Pre Market Report, March 13, 2019 | Stocks and Commodities

March 13, 2019
Time: 8 am

Pre Market Report:

1. Day before yesterday many people have gone short.
2. That is because everytime Nifty future traded above 11000, it came under selling pressure.
3. So people thought either markets will go down or consolidate.
4. But FIIs were net buyers for about Rs 4000 crore day before yesterday.
5. That triggered further buying and shorts had to run for cover..
6. Bears were trapped in the sudden rally of 250 points in Nifty in two days.
7. The following article says there are two rare indicators showing strong upmove ahead.
8. https://economictimes.indiatimes.com/markets/stocks/news/2-rare-indicators-signal-theres-no-stopping-dalal-street-bulls/articleshow/68378429.cms
9. FIIs keep pumping in more and more money.
10. Due to that Rupee also appreciating.
11. Tepid IIP figures and under control CPI data may lead to another rate cut in RBI policy next month.
12. Nifty all time high is around 11800, we are down nearly 500 points.
13. But yesterday we hit all time high in Bank Nifty.
14. Reliance, Titan and few other stocks hit all time high.
15. Markets may consolidate for few days and rally may resume after that.
16. So I will not advise any short positions.
17. On every dip, one can sell put options.
18. Yesterday despite Bank Nifty shooting up 500 points, PE premiums have not come down proportionally.
19. That is why India VIX was higher yesterday.
20. Even now Nifty 11000PE trading around Rs 40 and Bank Nifty 27000PE trading around Rs 45 are good bets as there are only 11 more trading sessions in this series.
21. Kotak Bank will be in focus as the case has been postponed and Uday has committed to reduce the promoter stake to 20% within a year.
22. Airline stocks will be in focus as Boeing planes are grounded.
23. In fact yesterday Dow closed in Red while Nasdaq and S&P 500 closed in Green just because of Boeing.
24. Any dip sell put options as markets are likely to continue its bull run until May 23.
25. Nifty future may trade between 11280 and 11380.