Pre Market Report, February 20, 2019 | Stocks and Commodities

February 20, 2019

Time: 8.15 am

1. US markets closed almost flat with positive bias.
2. Trump said March 1 is not a magical date to mean the deadline may be extended for US-China Trade agreement.
3. Wall Mart came with good results.
4. Asian markets are all doing very well.
5. Yesterday everyone thought that worst is over for our markets.
6. Since Nifty shot up significantly, some FIIs placed basket orders at 2 pm.
7. That triggered a mini panic and Nifty fell nealy 150 points.
8. This is the longest losing streak in the last 8 years of Indian Stock Market history.
9. THis is happening while the entire Global markets are doing well.
10. Let us hope, at least today Nifty closes in Green.
11. Yesterday's fall is different from the last many day's fall.
12. Mid cap and Small cap closed in Green while Nifty fell yesterday, usually it is the other way round.
13. FIIs sold in Cash market but bought in Index Futures and Stock Futures yesterday.
14. Even PSU Bank index was up more than 1% in such a weak market, usually PSU Banks always fall when markets fall.
15. In the last leg of the correction, blest of blue chip shares fall, Yesterday TCS, Infosys, ITC, Reliance all fell.
16. TCS fell more than 6% in two days.
17. We are also at the very important spport level of 10580-10600.
18. Therefore, we can assume, yesterday's last hour fall is just an abberation.
19. SGX Nifty is up by about 50 points.
20. Yesterday suggested two strategies, (i) Nifty 10700PE buy and 10600PE sell 2X and (ii) Bank Nifty 26800PE buy and 26500PE sell 2X.
21. Both trades likely to give good resturns as Nifty is likely to be around 10700 and Bank Nifty is likely to be around 26800 by the end of today.
22. Either we can book profits or carry forward for tomorrow.
23. Today Nifty future may trade between yesterday's low and yesterday's high.