Pre Market Report, February 19, 2019 | Stocks and Commodities

February 19, 2019
Time: 8.10 am

Pre Market Report:

1. US markets were closed yesterday.
2. Asian markets are mostly flat with positive bias.
3. Nifty future closed at the lowest point of the day yesterday.
4. We fell for 7 days straight.
5. That is a 5 year record.
6. Yesterday it was the turn of index heavy weights like Reliance, TCS, ITC, etc.
7. Nifty closed at the lowest closing level of February series.
8. Markets look over sold.
9. Some kind of technical bounce can happen any time.
10. Yesterday FIIs have sold for Rs 1340 crores.
11. But they did not sell much in F&O.
12. However DIIs have bought for Rs 2337 crores.
13. Now the Nifty has broken 50, 100, 200DMAs, the next logical support is 10580, January series low.
14. Expecting some good support at 10580-10600 levels, I bought 10700PE and sold 2X10600PE in weekly expiry.
15. Will make good profits if Nifty stays between 10600 and 10700.
16. Nothing to worry if Nifty shoots up beyond 10700.
17. Problem will be only when Nifty falls below 10550.
18. Similarly bought 26800PE in Bank Nifty and sold 2X26500PE in weekly options.
19. Expecting Bank Nifty to take support at 26500.
20. As long as Nifty is holding 10580 and Bank Nifty holding 26500, we can expect some technical bounce back.
21. If these levels are broken, then Nifty is likely to revisit 10000.
22. But that may not happen if there is no adverse news from Border.
23. SGX Nifty is trading about 20 points higher.
24. Nifty may trade between 10600 and 10900 unti the end of this expiry.
25. 10850-10900 level is the 50% retracement of recent fall, so there will be stiff resistance in this area.
26. 10580 was the January low and 10620 is Friday's low due to knee jerk reaction to Pulwama attck, so 10600 will be a strong support.
27. We can expect some short covering towards the end of the day if markets are holding until then.
28. But short covering rally may not be powerful as any powerful short covering rally will be met with fresh shorts.
29. Since bluest of blue chip stocks started falling, we can assume that we are somewhere near low.
30. Nifty future may trade between 10620 and 10750.