Pre Market Report, July 16, 2019 | Stocks and Commodities

July 16, 2019
Time: 8.10 am

Pre Market Report:

1. US markets closed marginally higher.
2. But Asian markets are mixed.
3. SGX Nifty is down by about 10 points.
4. Yesterday once again our markets were volatile.
5. Started around 11600, went down to 11515 and again came back to around 11600.
6. Bank Nifty under performed yesterday.
7. If not for Infosys, markets would have fallen.
8. Infosys alone had contributed about 50 points in Nifty while Nifty was up only 35 points.
9. Except Kotak Bank, all other banks have shown weakness.
10. Reliance has also been showing weak trend.
11. But I expect some kind of short covering in both Reliance and HDFC Bank towards the end of this week.
12. India VIX is around 12, Nifty future trading at discount.
13. Any small good news or bad news, markets are likely to move violently upside or downside.
14. YES bank fell 6% from intraday high.
15. There is some equity infusion news from YES Bank after markets close.
16. So YES Bank may see some action today.
17. Ahead of its results tomorrow, straddle is trading at 15% premium.
18. I sold 95 short straddle and bought 80PE. I can manage the upside risk, not the downside risk, so bought PE.
19. More than 4 lakh OI added in both 11600CE and 11500PE.
20. So sellers are expecting rangebound market until Thursday.
21. As usual FIIs have sold in Cash market for Rs 216 crores and DIIs have bought for Rs 591 crores.
22. There are some conflicting reports about surcharge on Tax above Rs 2 crore for FPIs.
23. Some news say that FPIs may be carved out of this sur charge.
24. Some other news say that is not true.
25. Trade data that came yesterday evening was not good.
26. Both exports and imports fell.
27. After the budget even bullish people turning bearish for medium term to long term.
28. As long as Nifty future not breaking 11480, I will be holding on to my longs.
29. I will add shorts if Nifty future breaks below 11480.
30. After two days of fall, after the budget, I said markets will consolidate at lower levels.
31. That is what is happening now.
32. We need some triggers to move out of consolidation.
33. That can come from HDFC Bank and Reliance results.
34. Until then it is going to be choppy and rangebound market.
35. Nifty future may trade between 11520 and 11640.