Pre Market Report, July 1, 2019 | Stocks and Commodities

July 1, 2019
Time: 8.10 am

Pre Market Report:

1. Trump_Xi meeting went as expected.
2. In fact relaxation for Huawei was not expected.
3. Asian markets are higher.
4. SGX Nifty opened around 11880 but now trading around 11850.
5. That is not even 10 points higher than Friday's closing.
6. I tweeted saying, if Trump-Xi meeting is succeeds, Crude will shoot up and that is not good for India.
7. Brent crude is up by more than 2%.
8. FIIs have sold in Cash market.
9. First trading day of July was very bad.
10. One, people were nervous about G20 meet.
11. Second, people expect very bad Auto monthly sales data today.
12. So traders lightened the positions.
13. Reliance is looking very wek.
14. It has fallen fro,m Rs 1420 to Rs 1260.
15. That is a big fall without any reason (or we do not know the reason, there is one rumor floating around about Reliance)
16. PSU banks are doing well due to recapitalisation.
17. On Friday even private sector banks did badly.
18. This week is heavy with news like monthly Auto, Cement sales data, Manufacturing and Services PMI data, Budget, US jobs data, etc.
19. High Debt stocks fall continues, DHFL fell 15%, Reliance Infra and Reliance Capital also fell.
20. Very first trading session, DHFL has come into trading ban.
21. DHFL 10PE also trading at Rs 0.30.
22. So people expect DHFL to fall below Rs 10 in one month?
23. For the last few weeks we have not been following Global cues.
24. We are likely to go for budget with weak market set up.
25. And if budget disappoints, markets may break down.
26. On the other hand if Global cues continue to be good and if our market recovers and if Reliance recovers, then we may breakout after budget.
27. Right now we are trading in the middle of the range 11650 and 12050.
28. This range of 400 points is holding for more than a month.
29. And that is likely to hold at least until budget.
30. I advise selling PE 11500 and below and CE 12200 and above.
31. Playing with ratio spread is a good idea.
32. I am still taking moderately bullish view and hence bought 11800CE and sold 2X12000CE for a credit of Rs 15.
33. No downside risk and upside risk only above 12200.
34. There will be good profit if markets consolidate around 12000.
35. Today Nifty future may trade between 11820 and 11920.