Pre Market Report, February 15, 2019 | Stocks and Commodities

February 15, 2019
Time: 8.15 am

Pre Market Report:

1. US markets closed lower due to retail sales data.
2. Asian markets are subdued.
3. But we have been grinding lower irrespective of Global markets.
4. Yesterday Yes Bank shot up 31% and that saved the Bank Nifty from collapsing.
5. Nifty has fallen for 6 consecutive days.
6. Now today on 7th day, Global cues are very bad, many Asian markets are down by more than 1%, on top, there is a terror attack also.
7. SGX Nifty is not reacting negatively but for the last many days SGX Nifty was not a correct indication.
8. Yesterday FIIs have sold heavily in F&O.
9. But again, the shorts could have been created to contain the losses in Put options.
10. Huge shorts in the system is also good as if markets fall further at some point these shorts will start covering and that will cushion.
11. Anyway 10700 is suppose to be the last support, yesterday it went close to that and recovered.
12. But the recovery was not strong, the recovery was also sold into in the last half an hour.
13. Crude prices are higher and there was huge selling in OMCs yesterday.
14. Few stocks went up also due to short covering, CG power fell 30% day before yesterday and shot up 22% yesterday. DHFL and India Bull Housing Finance also saw some decent short covering.
15. Overall market set up is really not looking good.
16. Nifty will have to close in Green at least today.
17. Yesterday though Nifty fell, Mid caps and Small caps did well. That is a consolation.
18. Huge OI added at 10800CE in the next week options shows the upside is limited in the short term.
19. There are no triggers also for the next five trading sessions. That could be one reason.
20. I am planning to buy 10800PE and sell 2X10700PE as I feel 10700 is a strong support. All weekly expiry trades.
21. All index heavy weights are falling and this could be the last leg of capitulation.
22. Today Nifty future may trade between 10720 and 10820.