Pre Market Report, February 13, 2019 | Stocks and Commodities

February 13, 2019
Time: 8 am

Pre Market Report:

1. January series, Nifty expired at 10831.
2. Yesterday also Nifty closed at 10831.
3. In the last two weeks Nifty shot up about 300 points and fell exactly the same amount.
4. Yesterday there was a basket selling that brought Nifty 70 points down within minutes.
5. Bank Nifty fell more than 200 points.
6. Everyone was expecting Axis Bank to fall but ICICI Bank fell.
7. We fell despite very good global cues.
8. US Govt shut down is averted as there was some deal for Mexico wall.
9. Later Trump also hinted he might extend the deadline for US-China Trade deal.
10. But despite all good news, both FIIs and DIIs are selling in Cash market.
11. Yesterday after market close, Inflation data came at 19 month low, close to 2%, Lowest end of RBI range.
12. IIP data, 2.4%, also was not that bad.
13. Coal India came with good results, it may see some short covering.
14. Midcaps and Small caps are bleeding.
15. India is the only major market to trade in negative in 2019.
16. If this under performance is not corrected in the next few weeks, then the problem may persist until election results.
17. Until then keep selling Call options on every rise is the only strategy.
18. Markets should stabilise around this level.
19. I will turn bearish if Nifty future breaks 10820.
20. SGX Nifty is trading about 30 points higher.
21. Since the Global cues are good, we may not fall today.
22. But if there is any basket selling in late afternoon, Nifty future may fall to 10820.
23. Yesterday's high will be the resistance today.
24. Nifty 10900CE, 11000CE added huge OI.
25. So upside may be limited for next few days.
26. Despite basket selling, Nifty falling 70 points and Bank Nifty falling 200 points, India VIX did not shoot up.
27. That is a positive news, markets may stabilise, may not continue to fall.