Pre Market Report, April 30, 2019 | Stocks and Commodities

April 30, 2019
Time: 8.25 am

Pre Market Report:

1. Yesterday we were closed due to election in Mumbai.
2. But world markets were higher yesterday.
3. Today China PMI data came lower.
4. So many Asian markets are lower.
5. Since tomorrow is a holiday there can be some profit booking in many markets.
6. SX Nifty hit a high of 11878 yesterday but now trading around 11820.
7. The talk of the town is YES Bank.
8. Analysts expect 10 to 20% down in the stock.
9. Anyway is a high volatile stock.
10. The fall in YES Bank will be a drag in Bank Nifty also.
11. ADAG Group companies rating downgrade will also affect Reliance Capital as well as other NBFCs.
12. Despite all these bad news SGX Nifty is higher.
13. Not everything is negative.
14. Crude has fallen by 4% since our markets closed day before yesterday.
15. That will be a sentimental positive.
16. Another important factor, elections.
17. With yesterday's polling, polling is over for more than 400 seats.
18. The Exit poll results of the majority of the seats now will be available with some people.
19. So movement of the market this week is very important.
20. This weeks move is likely to extend in the next few weeks, until official results are out on May 23.
21. Though Nifty was up more than 100 points and Bank Nifty was up more than 450 points, Mid cap and small cap closed in Red day before yesterday.
22. Due to YES Bank, ADAG news, expect another day of high volatile move.
23. Last Friday, for the first time, India VIX fell by more than 6%.
24. That may reverse, I expect India VIX to touch 30 before election results.
25. But the increase in VIX may be compensated by decay in Theta.
26. Nifty future may trade between 11760 and 11880.