Pre Market Report, February 27, 2019 | Stocks and Commodities

February 27, 2019
Time: 8.20 am

February 27, 2019:

1. S markets closed slightly lower.
2. But Asian markets are mostly higher.
3. SGX Nifty is up nearly 40,50 points higher.
4. Yesterday market was a surprising in many aspects.
5. SGX Nifty was down only 100 points.
6. People thought Nifty will stabilise after falling 100 points.
7. But fell nearly 200 points.
8. Then the recovery came and nobody expected such a big recovery and Nifty came to positive zone, wiping out the entire 200 point fall.
9. Then in the last one hour, again, came under selling pressure and fell about 70 points.
10. More surprises came after the market hours.
11. Every one thought FIIs would have sold heavily and DIIs would have bought heavily to support the market.
12. But was exactly opposite, FIIs have bought heavily in Cash market for Rs 1674 crores.
13. But DIIs have sold heavily for about Rs 720 crores.
14. Rupee was expected to depreciate but Rupee did very well.
15. Crude is a positive news for us.
16. Yesterday IOC hit a swing high.
17. In fact, yesterday only index heavy weights brought the markets down while broader markets have done well.
18. If Nifty expires between 10780 and 10880 this month, then it will fourt straight month of closing in this range.
19. Successful IAF strike improved the prospects of BJP in the upcoming elections.
20. As per satta bazar reoports, BJP may get 250 seats from the earlier prediction of 200 seats.
21. If there is any stable Govt. at the centre, then Nifty will out perform other emerging markets this year.
22. Markets may start factoring in even before elections.
23. FIIs huge buying in Cash market reflects this thinking.
24. Yesterday I sold 10700PE and 10950CE, both trading at huge premiums due to spike in VIX.
25. Even 10500PE traded more than Rs 10. Today it is likely to close below Rs 2.
26. If HDFC, HDFC Bank, Reliance, Kotak Bank start moving higher, markets may move higher significantly.
27. Nifty is likely to expire between 10800 and 11000 tomorrow.
28. Today Nifty may trade between 10780 and 10900.
29. Bank Nifty hugely under performed yesterday despite good show by Axis, Yes Bank.
30. All 4 index heavy weights, which contribute to 75% of Bank Nifty, (HDFC Bank, KOtak Bank, ICICI Bank, SBI) fell yesterday.
31. If there is any short covering in these four stocks, then Bank Nifty may out perform.
32. Usually HDFC Twins will come under selling pressure when people expect FII selling.
33. But yesterday, on contrary FIIs were huge buyers, that may trigger some short covering in HDFC Twins.
34. So it will be an interesting day trade today.
35. Let us see what happens.