Pre Market Report, February 18, 2019 | Stocks and Commodities

February 18, 2019
Time: 8.10 am

Pre Market Report:

1. US markets closed significantly higher on Friday.
2. There seems to be some in principle agreement on major issues between US and China.
3. Asian markets are all trading firmly in Green.
4. But SGX Nifty is just up by 25, 30 points.
5. By the time Global uncertainty gone, Local uncertainty has come with regards to Elections and Pulwama attack.
6. For next few days markets will be selling on rise, expecting some kind of retaliation by Indian Forces.
7. Nifty will face resistance between 10850 and 10900 in this series.
8. Huge Call writing, 50% retracement of the recent fall, bearish sentiment, etc will make 10850-10900 as resistance zone.
9. At the same time, Nifty took support around 10600 two times in this year.
10. So Nifty may trade between 10500 and 10900 for the next two weeks.
11. On Friday Bank Nifty under performed Nifty.
12. Reliance led the recovery from low levels.
13. But last one hour recovery was mainly due to short covering.
14. If markets move higher, again shorts will enter the system.
15. Those who covered the shorts will get another opportunity to short at higher levels.
16. That is why the upside movement will be limited.
17. At the same time, still there are huge shorts in the system.
18. Any fall below 10600, these shorts will look to cover.
19. That is why the downside will also be limited.
20. One can consider selling 10500PE and 10900CE strangle.
21. Or one can buy 10800PE and sell double the quantity of 10700PE.
22. Crude prices rising is another bad news for India.
23. Nifty future may trade between 10720 and 10820.