Pre Market Report, January 11, 2019 | Stocks and Commodities

January 11, 2019
Time: 8.15 am

Pre Market Report:

1. US markets closed higher after opening lower in the morning.
2. Asian markets are mostly higher.
3. SGX Nifty many times traded above 10900 in the past one month, but as soon as markets opened here, markets came under selling pressure.
4. Today also SGX Nifty traded above 10900 but now slightly below 10900.
5. Nifty is facing huge resistance between 10900 and 11000.
6. Nifty 11000CE and 10500PE has the highest OI amoung Call and Puts respectively.
7. Reliance, after falling 25% from its 52 week high, is not showing any move.
8. ITC trading almost at half the valuation of other FMCG stocks.
9. HDFC Bank and Kotak Bank have not being doing well for the last few days.
10. So all the index heavy weights not doing well, that is why even yesterday Midcaps did very well, traded in Green for the whole day, while Nifty and Bank Nifty had been trading in Red for whole day.
11. We have to see how TCS reacts to its results today.
12. That will affect the entire IT sector.
13. FIIs have sold in Cash market while DIIs bought very little.
14. But FIIs seems to have taken bullish view in F&O market.
15. That is why Future premium increased yesterday.
16. November expiry was on November 29 and Nifty closed at 10858.
17. After 6 weeks, we are still around the same level.
18. Last January 31, Nifty closed at 11027, we are still below that level.
19. So for nearly one year, we have been consolidating.
20. In 2019, we have been under performing, we are down while most other major markets are higher.
21. If markets are not breaking out next week, then Nifty will be trading between 10500 and 11000 for the rest of the month.
22. I have sold 10900 short straddle for Rs 400 few weeks before, even after 5, 6 weeks we are near there only.
23. Sometimes short straddle give very good profit.
24. Nifty future may trade between 10820 and 10920.