Pre Market Report, February 28, 2019 | Stocks and Commodities

February 28, 2019
Time: 8.10 am

Pre Market Report:

1. US markets ended mixed after a choppy session.
2. Asian markets are also mixed.
3. China PMI came at 49.2 ve expectation of 49.5.
4. Hong Kong opened negative but now turned positive.
5. SGX Nifty was trading with negative bias.
6. White House urged both India and Pakistan to take steps to deescalate the tension at the border.
7. After this news, SGX Nifty is up and now trading around 10835.
8. Since last 3 months Nifty expired between 10780 and 10860, Nifty opening around 10820 is a good sign.
9. Highly volatile series is coming to an end.
10. February series, Nifty started around 10800, then went up to 11150, then crashed to 10600 and in last two days, Nifty made 200 point swing intraday.
11. This will be the fourth month of flat closing if Nifty closes between 10780 and 10860.
12. Since markets closed around 10800, and 10800CE and PE together costs Rs 100, Nifty is likely to expire between 10700 and 10900 if these short straddlers have to make some money.
13. Usually that happens in a high volatile environment.
14. Remember India VIX was up by more than 10% yesterday.
15. Despite big Geo Political tensions, Rupee is not depreciating.
16. Max Pain is at 10800 due to heavy shorting yesterday.
17. The fear was so high, Nifty 10400PE closed above Rs 7.
18. If the markets are holding, then there can be some short covering in Bank Nifty towards the end of the day.
19. HDFC Bank, Kotak Bank, ICICI Bank, SBI which together contrbute 75% to Bank Nifty have been under performing for the last two days.
20. Any short covering in these 4 stocks along with Reliance and HDFC can make Nifty to expire above 10850.
21. Considering the situation on the ground, Nifty opening about 30, 40 points higher is a very good news for bulls.
22. India VIX may come down today, giving good profits for writers.
23. Nifty may expire between 10780 and 10880, if the positive sentiment stays.
24. This expiry ia an interesting one as Nifty Max Pain is at 10800 and Bank Nifty Max Pain is at 27000.