Pre Market Report, January 24, 2019 | Stocks and Commodities

January 24, 2019
Time: 8.15 am

Pre Market Report:

1. US markets closed in Green after a volatile session.
2. Markets fell drastically in the last one hour yesterday.
3. The fall was led by ITC which fell nearly 7% from intraday high.
4. Infosys, Reliance, Kotak Bank all came under profit booking.
5. There was unwinding all strikes from 11000 to 10000 except 10800PE.
6. Bank Nifty 27500CE added huge open interest in Weekly options.
7. Max Pain is around 27400.
8. So Bank Nifty will face huge resistance between 27400 and 27500.
9. Yesterday I thought Nifty will take support at 10880, but fell below this in the last hour selling.
10. The last hour selling was really unwarrated, puzzling.
11. That may get corrected today.
12. As I said yesterday, in the last 6 trading days, though Nifty future broke 10900 level 5 times, it closed above 10900.
13. But yesterday, first time, it closed below 10900 after breaking.
14. If today Nifty futures closes below 10900 by the end of the day, I will turn bearish, will cut my long positions.
15. Banking stocks came under selling pressure and Yes Bank did not fall due to its results today.
16. FIIs have sold for more than Rs 700 crores in Cash market.
17. With this FIIs selling has crossed Rs 5000 crores in January.
18. That is the only concern for bulls right now.
19. If retail people lose faith and start withdrawing money from mutual funds, then the real fall will come.
20. So market sentiment has to change before that happens.
21. For the last 5 months we have been correcting and volatile, trading without direction.
22. February series will make or break the markets as Budget, US-China Trade talks, US Govt shut down issues will give some clarity.
23. Not to forget RBI policy where people are expecting some rate cut.
24. Yes Bank results will be after the markets close, so not a big impact during trading hours.
25. Nifty future may trade between 10780 and 10920.
26. Bank Nifty weekly expiry may happen between 27000 and 27500.