Pre Market Report, October 8, 2018 | Stocks and Commodities

October 8, 2018
Time: 8.35 am

Pre Market Report:

1. Last week markets fell, the worst weekly fall in the history of Indian stock market, in absolute term.
2. Even during 2008 crisis, markets did not fall like this.
3. Those days all stocks have fallen, but now some stocks are falling 50% in one day and two day.
4. Oil Marketing companies all fell more than 40% in less than half an hour of trade. More than 20% on Thursday after 3.15 and another more than 20% before 9.30 am on Friday.
5. FIIs have sold heavily for more than 9000 crores in the last few days.
6. So markets are at absolute panic.
7. Even very strong stocks like Bajaj Finance falling 9% in one day.
8. Reliance fell more than 12% in two days.
9. Now the Global cues are turning bad.
10. China cut the CRR (Cash Reserve Ratio) for banks.
11. India did not go for rate hike.
12. But Asian markets are mostly negative.
13. SGX Nifty broke 10200 on Friday night.
14. But now trading around 10270.
15. I bought 10600PE and sold 2X10300PE, even that has given some losses.
16. I have sold some call options to cover the losses.
17. Crude is down slightly and trading around US$83.5
18. If there is no further flare up in crude prices and Rupee, we can expect markets to stabilse around this level.
19. We need to see how Rupee opens at 9 am.
20. US treasury will not work today, so currency related fear will be off at least for one day.
21. Japan markets closed.
22. Party time for Put buyers as markets fell more than 10% after many years.
23. Time to play safe, but as per some highly placed sources, Govt is likely to do something to stabilise the market.
24. One possibility is that LIC will buy aggressively like they did in 2013.
25. Nifty future should take support at 10220. Resistance may come around 10380.