Pre Market Report, January 29, 2019 | Stocks and Commodities

January 29, 2019
Time: 8.15 am

Pre Market Report:

1. What s fantastic move by Nifty is 2 days.
2. On Friday, Nifty future hit the January series high.
3. Yesterday it hit January series low.
4. DLF CBI case, Chanda Kochar FIR, Zee TV news, Mind Tree, CCD issues and top of all Cobra Post news taking toll on markets.
5. Yesterday it was the turn of Adani Group stocks to fall more than 10%.
6. In Zee group only ZEEL recovered and in Adani group only Adani Ent. recovered (as it was in trading ban, no shorting was possible)
7. Now Global cues are also turning bad.
8. Caterpillar and Nvidia fell after poor results.
9. Crude fell 3% and stabilising now.
10. U.S. prosecutors filed criminal charges against Huawei Technologies Co., China’s largest smartphone maker.
11. Next few days going to be very interesting as Cobra Post, US-China Trade Talk, Budget, key corporate results alll will play out.
12. Markets fell without any selling by Institutions. Even in F&O, FIIs did not sell.
13. SGX Nifty is trading about 25 points lower following Global cues.
14. HCL Tech, HDFC, Bajaj Finance, Bajaj Finserve, Axis Bank are some of key corporates set to declare results today.
15. Only Reliance and Infosys are holding the markets, otherwise Nifty would have broken 10500 by now.
16. Congress putting pressure on BJP to announce popular budget.
17. Nifty future may trade with huge volatility between 10620 and 10720.
18. Nifty 10700 and 10800CE added huge open interest, making upside limited.
19. Max Pain is also at 10800 and hence Nifty is not likely to close above 10800.
20. Bank Nifty under performed Nifty yesterday and I sold Bank Nifty 27000CE.
21. Max pain is also at 27000, so Bank Nifty is not likely to expire above 27000.
22. Many corporate results, including important one, Apple, are due today in US.
23. I expect markets to close at the lowest point of the series on Thursday and bottomout on Friday.
24. But too many uncertainties make predictions very difficult.
25. On any intraday bounce, sell call options in Nifty 10800 and above and Bank Nifty 27000 and above.
26. That is the only strategy we can follow now.
27. FII, DII data and Crude price fall may support our markets all lower levels.
28. Since the downside may be limited to Bank Nifty, can sell ATM call in this week and buy in next week strategy may also work well.