Pre Market Report, April 10, 2019 | Stocks and Commodities

April 10, 2019
Time: 8 am

Pre Market Report:

1. US markets closed lower after Trump talked about Europe Trade.
2. Asian markets are following US markets.
3. SGX Nifty is down by about 30 points.
4. HDFC Bank stake sale is a big news.
5. Bloomberg Quint reported that Rs 2500 crores worth of HDFC Bank shares will be sold today at a maximum discount of 3%.
6. 3% is a big discount, that can shave off 200 points in Bank Nifty.
7. We have to wait and see the demand for this stake sale.
8. But the shares, even if it falls in the morning, likely to recover later in the day.
9. HDFC Bank ADR did not react to this stake sale.
10. But we can not derive any conclusion based on ADR prices as ADRs trade at a significant premium of 10 to 15% over Indian prices.
11. But one good news is that FIIs have bought for more than Rs 1000 crore in Cash market after a gap of about 10 to 15 days.
12. Stocks also corrected by 5 to 10%. That makes sense for people to enter rather than chasing.
13. Reliance has fallen by Rs 85 in the last 7 trading sessions.
14. Same was the case with SBI, fell from 330 to 310, about 7%.
15. Auto stocks are holding firm despite so many negative news.
16. IMF cut Global growth as well as India Growth.
17. Still IMF said India is the fastest growing Economy.
18. DIIs are still selling, despite good flow in Mutual Funds.
19. First phase of election starts tomorrow.
20. Market will start factoring in the exit poll results, remember only you and me will have access to exit poll results on May 19, but some privileged people will have the data along the way.
21. This along with corporate results will dictate the trend in the next 2 weeks.
22. IT stocks looking bullish, but I am not expecting any big move from here, I sold TCS 3300CE and Infy 840CE.
23. Premiums are very high due to results and high VIX.
24. I also sold HDFC Bank 2400CE, Kotak Bank 1400CE, Reliance 1400CE
25. Nifty future may trade between 11680 and 11780.