Pre Market Report, July 18, 2019 | Stocks and Commodities

July 18, 2019
Time: 8.10 am



Pre Market Report:

1. US markets closed lower.
2. Asian markets are tracking US markets to trade lower.
3. Netflix have some losses of customers.
4. So US and Europen futures are also lower.
5. SGX Nifty opened around 11630 but now trading around 11650.
6. YES Bank came with very bad set of results after market close yesterday.
7. Anyway nobody expected good results from YES Bank, that is why it has fallen from Rs 400 to Rs 100.
8. I would have doubted their integrity if they had declared good results.
9. At least now we can say that YES Bank is transparent.
10. These are the negative things.
11. But there are some positive things also.
12. First, Crude prices has fallen from US$66 plus to US$63 plus.
13. That is about 5% fall in Crude which is good for our markets.
14. FII selling is almost Nil after relentless selling since budget day.
15. Reduction in selling pressure by FIIs is a positive news, markets may stabilise, at least if not rising.
16. Then corporate results, tomorrow Reliance and Saturday HDFC Bank.
17. Both stocks have fallen significantly, so ahead of their results there may be some short covering.
18. As both results are after market hours, Monday there may be gap up or gap down which will increase the risk of traders.
19. So they will like to square off the trades before the results.
20. Traders can square up tomorrow also, but they can not maniplate option prices.
21. As today is the expiry, they can square up safely with a combination of futures and options.
22. So we can expect some short covering at least in HDFC Bank, after 3 pm.
23. Bank Nifty Max Pain is at 30700 and Nifty Max Pain is at 11650.
24. That indicates rangebound market today.
25. Both 11600PE and 11700CE have more than 20 lakh OI.
26. So Nifty is likely to trade between 11600 and 11700.
27. Significant OI added at even 11700PE and 11650PE. In fact, there was unwinding in 11600PE.
28. Same was the case with Bank Nifty, 30700, 30600, 30500PE added significant OI.
29. Bank Nifty 30900CE also added significant OI.
30. So we can expect Bank Nifty to trade between 30500 and 30900.
31. We have not been following Global cues or SGX Nifty for last few weeks, let us see what happens today.