Pre Market Report, January 18, 2019 | Stocks and Commodities

January 18, 2019
Time: 8 am

Pre Market Report:

1. We expected some trend to set in after 4 months of volatile trade.
2. Three weeks are over in January series, still markets are volatile.
3. FIIs giving confused signals, one day buy and one day sell.
4. Today and Monday are going to be very important trading days.
5. Today markets will react to Reliance results and Monday markets will react to HDFC Bank and Kotak Bank results.
6. Though results were not good initially by IndusInd Bank and TCS, but Infosys changed the sentiment.
7. Now Reliance has come with good results and if HDFC Bank and Kotak Bank give good results then markets will break out.
8. Two days before, there was huge unwinding of calls and huge addition of puts.
9. But markets consolidated withhuge volatility for next 2 days.
10. But Nifty came under huge selling more than 10 times whenever Nifty fture traded above 10900.
11. This time Nifty future closed above 10900 for 3 consecutive days.
12. Today SGX Nifty trading around 10980.
13. So going by that indication, we are likely to close above 10900 for 4th consecutive days.
14. This is a sign of breakout.
15. If Nifty uture crosses, then only all people will take long positions, pushing the index towards 11200.
16. I sold 11000, 10900, 10800, 10700PEs aggressively.
17. Have some short straddles at 11000 also.
18. Reliance has been a commodity play so far, but now due to JIO and Retail, Reliance may get rerated and that will be very good for Reliance.
19. Reliance is a long term investment, it can easily go to Rs 3000 in 3 years.
20. There was a news that said US is considering relaxing China tariff.
21. US markets reacted positively.
22. But later US Govt. denied any such move.
23. Yesterday OMC did very well..
24. Today HDFC Bank, HUL, Kotak Bank, Reliance, Axis Bank will be in focus.
25. I took delivery of Axis Bank at Rs 510, one of my best investment.
26. Oo top of good capital appreciation, I keep selling Call options every month.
27. This month I have sold Axis Bank 700CE.
28. Planning a call ratio in Axis today.
29. Nifty future may trade between 10900 and 11020.
30. Expect some sharp move towrads the end of the day.