No title | Stocks and Commodities

July 10, 2019

Time: 8.30 am

Pre Market Report:

1. US markets closed mixed.
2. Asian markets are trading with positive bias.
3. But SGX Nifty is trading flat.
4. Trump's tweet against India may be one reason.
5. TCS results are in line with expectation.
6. Infosys fell more in ADR than in India.
7. So if market is really bullish about TCS then that should have reflected in Infosys ADR.
8. So there may not be any big move in TCS.
9. Yesterday markets were highly volatile but closed almost flat.
10. I mentioned yesterday that markets are likely to consolidate at lower levels after such a big fall.
11. At some point Nifty made intraday recovery of more than 100 points.
12. But FIIs have sold for little less than Rs 700 crores and DIIs have bought for little more than Rs 700 crores.
13. Could not sustain, fell again.
14. Banks, Housing Finance and NBFCs are likely to do well.
15. Yesterday LIC Housing Finance shot up about Rs 30 from intraday low, that is an excellent move in a sideways market.
16. LIC Housing is very cloe to 52 week high, even Bajaj Finance which fell about 10% the day before, shot up by 5% yesterday.
17. But IndiaBulls and DHFL have not done well.
18. PSU Banks have seen some recovery.
19. But broader market is struggling to recover.
20. There are no more cues this week.
21. Infosys results, IIP and Inflation dat all likely to come after market hours on Friday.
22. The only cue is IndusInd Bank results which will be coming during market hours on Friday.
23. So Trump Tweet, FII selling are negatives today.
24. While DII buying and better Global cues are positives today.
25. AT some point there will be short covering as markets are over sold.
26. But we do not know when that will happen.
27. But until tomorrow 3 pm, that may not happen as option writers would like to eat the premiums before letting markets to the short covering mode.
28. Auto stocks bleeding continues, Maruti finally broke Rs 6000 and closed Rs 5950.
29. This is more than 40% correction from all time gigh of Rs 10000.
30. Nifty future is likely to take support at yesterday's low.
31. On the higher side, 11720 is likely to be a resistance.