Pre Market Report, July 2, 2019 | Stocks and Commodities

July 2, 2019
Time: 8.15 am

Pre Market Report:

1. US markets closed higher.
2. Asian markets are mixed.
3. SGX Nifty is also trading about 10, 15 points higher.
4. Yesterday markets went up due to short covering.
5. There are more and more bad news from economy.
6. Monthly auto sales data is very bad.
7. GST collection fell below Rs 1 lakh crore again,
8. Since the GST collection is about 15% below expectation, room for reducing tax for autos is limited.
9. Due to heavy rain, public holiday has been declared.
10. Hope trading goes well as most of the broker's office located in Mumbai.
11. Even yesterday when markets opened with good gap up, Reliance fell below last Friday's close.
12. Then the short covering came in Reliance and that supported the index.
13. HDFC hit all time high and HDFC Bank is almost at all time high.
14. An article about HDB Finance grey market price helped these two stocks.
15. Otherwise there was no big move even in private sector banks.
16. Kotak Bank is struggling to cross 1500.
17. YES Bank struggling around 110 and Indusind Bank around 1420.
18. Bajaj Finance also hit all time high yesterday.
19. So once again, it is the show of few blue chips while broader markets are bleeding.
20. Sun TV fell from 1100 to 530, I bought, this is the third month, still Sun TV is struggling below 530.
21. Though it is a fundamentally good stock, prices are so low, even Zee having so much problems trading at much higher valuations.
22. So it is better to stick to few good large cap stocks for the time being.
23. No mid caps and small caps.
24. OMCs fell more than what was expected.
25. Today there is some fall in Crude and hence these stocks may see some short covering.
26. This Friday, budget event is a big event.
27. Then results season begins on July 9 with TCS declaring results on that day evening.
28. Yesterday TCS saw good volatility.
29. I have some short positions in TCS.
30. FIIs have bought for Rs 426 crores in Cash market and that should support indices at lower levels.
31. Some beaten down stocks are stabilising.
32. Housing Finance companies are doing well, LIC Housing, HDFC, IBULL Housing, DHFL, etc.
33. Reliance is struggling at lower levels.
34. For markets to move beyond 12000, Reliance will have to move beyond 1300.
35. Let us see if there is any further short covering in Reliance today.
36. Right now, I have Bank Nifty 31000 short straddle, sold some puts in weekly options at 30500, 30800, 31000.
37. In Nifty holding short straddles at 12000 both in July and August. In addition, sold some weekly options at 12100.
38. Other stock strategies and index strategies I am posting in Twitter.
39. There may be some moderate rally in the market ahead of Budget.
40. Nifty future may trade between 11860 and 11980.