Pre Market Report, June 20, 2019 | Stocks and Commodities

June 20, 2019
Time: 8.10 am

Pre Market Report:

1. Day before yesterday our markets were highly volatile.
2. After testing 50DMA, markets recovered.
3. Yesterday there was a huge gap up due to Europe news.
4. Everyone thought Nifty will not break Monday's low of 11642.
5. Even I said that will be the low for this series.
6. But Nifty future after touching 11815, fell 185 points.
7. That was a huge fall, considering the fact that entire Global markets were trading in Green.
8. The fall was triggered by India Bull Housing Finance which fell 20% intraday.
9. YES Bank also fell, threatening to break 100.
10. As usual stocks like Jet, Rel Infra, PC Jeweller, Jain Irrigation, etc fell. These stock are falling 10 to 20% everyday.
11. I remember my joke "The support for all ADAG stock is ZERO"
12. I have seen this kind of falls only in 2008.
13. This is not going to end anytime soon.
14. The collateral damage is seen across the board.
15. Auto stocks have corrected anywhere between 40 to 60% and now more bad news coming.
16. Maruti heading towards 52 week low due to Royalty issue.
17. Auto are not going to revive unless there is some reduction in GST.
18. Earlier it was Excise duty, the cut could have come in budget, now it is no more excise duty, only GST, only GST council has the power.
19. I bought Maruti at 3500 for one of my clients and sold at 7000, when it went to 10000 he was not happy.
20. Now he is happy.
21. Reliance is not recovering at all after falling so much.
22. Even yesterday it fell 40 points from intraday high.
23. Kotak Bank supported Bank Nifty yesterday and Bank Nifty out performed Nifty yesterday.
24. US Fed acted as per expectation, did not reduce rate but showed willingness to reduce the rate.
25. Now there is 100% probability that it will cut the rate by 25 basis point in July meeting.
26. Asian markets are mostly flat with positive bias.
27. SGX Nifty is trading about 30, 40 points higher.
28. By seeing huge two way movements in last two days, today option sellers will be afraid of selling options for expiry.
29. Max  Pain for Nifty is at 11700 and for Bank Nifty is at 30400.
30. Remember yesterday Bank Nifty traded between 30200 and 30600.
31. Nifty traded between 11620 and 11820.
32. Selling any options within this range is going to be difficult.
33. I do not divulge my expiry day plan as I am afraid some operators will take counter positions and manipulate market as my positions are huge.
34. But I am advising my friends to keep away from intraday option selling today.
35. Expect Nifty future to trade between 11680 and 11820. If 11680 is broken today also, I will be taking more short positions for positional trade.