Pre Market Report, February 14, 2019 | Stocks and Commodities

February 14, 2019
Time: 8.00 am

Pre Market Report:

1. US markets closed higher as trade optimism boosted by Trumps statements.
2. But Asian markets are mixed.
3. SGX Nifty is trading slightly lower.
4. Yesterday one of the worst volatile day for our markets.
5. Turnover crossed Rs 9 Lakh crore.
6. Bank Nifty fell 150 points, then shot up 150 points and again fell 200 points, all in the last one to one and half hours.
7. Nifty also the same, fell 50 points, then shot up 50 points, only to fall 80 points.
8. Now Nifty has broken both 50 and 200DMA.
9. Next support is only at 10700 where 100DMA is there.
10. But the speed with which Nifty is falling is very scary.
11. In 9 trading sessions, Nifty shot up 300 points and then fell 350 points.
12. Nifty has fallen continuously for 5 days.
13. Will it fall today also? That is a million dollar question.
14. There may be some technical bounce and that may come with huge volatility.
15. Usually markets will either top out or bottom out with huge volatility.
16. Can we take yesterday's huge volatility as the bottoming out process?
17. We can be sure only if Nifty crosses 10850.
18. Heavy weights came under selling pressure yesterday afternoon.
19. Markets may open slightly lower and consolidate with some slight negative bias and the action will come in the afternoon.
20. Yesterday FIIs have sold for Rs 676 crores but DIIs have bought for Rs 713 crores.
21. Axis Bank issue subscribed more than 2 times both in Institutional and retail category is a positive news.
22. The stock also did not fall to 690, the floor price.
23. Yesterday it was the turn of CG Power to fall more than 10%. It fell 30% due to bad set of results.
24. Every day one or the other stocks falling more than 10%.
25. This is clearly the capitulation period.
26. Do not know whether we started factoring in Election uncertainty.
27. Usually when a trend is set, only after expiry, we can expect trend reversal.
28. So today's expiry is likely to be sluggish only.
29. FIIs accelerated selling in Cash market is a big concern now.
30. All long bets will be out if Nifty breaks 10700.
31. But Bank Nifty may take support at 26500 and Nifty may take support at 10700.
32. Today Nifty future may trade between 10720 and 10850.