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

August 1, 2019
Time: 8.15 am

Pre Market Report:

1. US markets fell significantly.
2. Fed cut rates by 0.25% as expected.
3. But what spooked the market is the comment by Fed Chairman.
4. Market expected series of rate cuts in future.
5. But Fed Chairman said that further cut is not required.
6. Even Trump was not happy and criticised.
7. Asian markets opened lower.
8. But most markets have recovered entire loss by now.
9. SGX opened around 11050 and now trading around 11080.
10. So we may open gap down by 40, 50 points.
11. Coming back to yesterday's trade.
12. Nifty broke 11000 briefly.
13. Then huge buying came and Nifty shot up more than 120 points. (Nifty ATR is around 120 for last few days)
14. Markets were highly volatile.
15. And we can expect huge volatility today also.
16. This is clearly a showdown between FIIs and DIIs.
17. FIIs keep selling index heavy weights to bring the markets down.
18. Reliance fell for 7 consecutive days.
19. FIIs have sold for about Rs 1500 crores while DIIs have bought for about Rs 2500 crores.
20. I have sold 11200, 11250, 11300CE.
21. I have also sold Bank Nifty 29000CE, 29100CE, 291200CE, 29300CE.
22. I have shorted SBI and sold 330PE.
23. Selling on any bounce is a good idea now.
24. At least until market closes above 200DMA on closing basis.
25. Core sector growth came at 0.2% which is very pathetic number.
26. Today the focus will be in auto stock as monthly auto sales data will keep coming.
27. Maruti auto sales data will come around 10.30 am.
28. Suddenly everything looks negative.
29. But surprisingly, despite 15K crore selling by FIIs, Indian Rupee is looking strong.
30. If anything happens in that front, that is the time to exit all your long positions.
31. I expect markets to consolidate between 11000 and 11150 for sometime.
32. Then Nifty (spot) closes above 11150 on any day, that is the time to close all short positions.
33. If Nifty closes below 11000 on any day, that is the day to add more short positions.
34. For the time being I am selling on every rise with some protection.
35. Nifty future may trade within yesterday's range.
36. If yesterday's high is crossed, there will be huge short covering.
37. With FIIs selling of 15K crore, DIIs buying of 17K crore in last one month, market is down by about 1000 points, there must be huge short positions.
38. First half an hour and last half an hour trade will be very interesting.
39. If I am not wrong first half an hour, DIIs may rule the market and last half an hour FIIs may rule the market.
40. One thing is sure retails will be killed by the cross fire.