Pre Market Report, July 22, 2109 | Stocks and Commodities

July 22, 2109
Time: 8.10 am

Pre Market Report:

1. On Friday, I expected sideways move.
2. But as soon as markets opened with good gap up of about 40 points, selling started.
3. The previous day FM clarified in Lok Sabha that surcharge will continue for FPIs and they can convert to company if they want to avoid surcharge.
4. But nobody took this seriously as that was the stand of the Govt earlier.
5. Later people attributed the big fall to this news.
6. Relince, HDFC Bank, Kotak Bank results could be reasons to book profits in these stocks.
7. Reliance and HDFC Bank both declared results in line with expectation.
8. Asian markets are generally in Green except Japan, Hong Kong and China.
9. Hong Kong protests turning violent now.
10. That could be the reason for Hong Kong and China fall.
11. But SGX Nifty is trading about 30, 35 points lower.
12. On Friday RBL Bank moved violently.
13. On Friday it traded lower by Rs 35, when results came, shot up by Rs 50, then fell Rs 90, to close 14% lower.
14. That violent move just after results created some panic in HDFC Bank and Kotak Bank.
15. Bank Nifty fell 1000 points in two days.
16. July series low of 11461 was broken on Friday.
17. Mid caps and small caps are bleeding.
18. Markets have turned bearish after budget.
19. Good corporate results only can support the market.
20. Otherwise sooner or later Nifty will touch 200DMA.
21. Auto index hit 52 week low on Friday.
22. 10 out of 12 stocks at 52 week low.
23. FIIs have sold for about Rs 900 crores and DIIs have bought for about Rs 700 crores.
24. So there was just a net sell figure of Rs 200 crores.
25. There may be some violent moves in both Nifty and Bank Nifty due to movements of Reliance and HDFC Bank.
26. Going by SGX Nifty and Reliance GDR prices, both are not going to make any big moves.
27. Nifty 11400PE is trading around Rs 60.
28. Nifty 11400, 11350, 11300PEs added huge OI.
29. So markets may find support between 11300 and 11400.
30. Nifty 11500, 11550, 11600CEs also added huge OI.
31. So resistance may come between 11500 and 11600.
32. There are so many important companies declare results this week and this kind of market set up is clearly surprising.
33. One this is sure, markets are going to be highly volatile in the next few days.
34. Either move positions to August series or strictly keep stop losses for this series positions.
35. Some change of rules by NHB (National Housing Bank) and reiteration by RBI Governor that RBI can not lend directly to NBFCs are not good news for NBFCs and Housing Finance Companies.
36. Nifty future may trade between 11360 and 11480.