Pre Market Report, August 13, 2019 | Stocks and Commodities

August 13, 2019
Time: 8.15 am

Pre Market Report:

1. One day holiday, many things happened both locally and globally.
2. First local issues, PM's interview is a positive surprise.
3. He has assured that Govt will do everything possible to bring growth.
4. RIL AGM was even more surprising.
5. Everyone who talk against Reliance talk about its huge debt.
6. Now RIL says it will become zero debt company.
7. Saudi Aramco buying 20% stake in petrochem division for US$16 billion.
8. If that comes through it is not only good for Reliance, also good for banks as this money will be going back to banking system.
9. People expect Reliance to go up 4 to 5% in today's trade.
10. Whether it will sustain of will come under selling pressure at higher level is a big question.
11. Now coming to global cues.
12. Everything was well until yesterday afternoon.
13. After RIL AGM, SGX Nifty hit a high of 11172.
14. Then came the news that Hong Kong protesters stormed air port and air port operations were cancelled.
15. A Chinese official comment about protesters as terrorists triggered speculation that Hong Kong will see a repeat 1989 Tiananmen Square.
16. Immediately world markets fell and SGX Nifty fell more than 100 points.
17. But nothing bad has happened as people started moving out of air port for the same fear.
18. Now Hong Kong markets are down by about 300 to 400 points while its futures were trading more than 500 points lower earlier.
19. Argentina elections added fuel to fire.
20. Argentine stocks fell 48% in single day.
21. That is likely to affect other emerging currencies also.
22. In July we did not follow global cues and there is no reason for us to follow global cues now.
23. SGX Nifty has not been a good indicator for the last few weeks.
24. Nifty future corrected after hitting a high of 11186.
25. That is likely to act as a resistance now.
26. We have only 2 trading sessions for this expiry.
27. Markets may wait t hear PM on August 15.
28. So there may not be a significant move in the next two days.
29. One good thing is that FIIs have stopped selling in Cash market.
30. They have bought for more than Rs 200 crores in Cash market.
31. We have to see how they react today, if they continue to buy, we can expect a rally towards 11500 in the next few weeks.
32. On Friday I sold Nifty 11300CE at Rs 20, Bank Nifty 29000CE at Rs 60, Bank Nifty 27500PE at Rs 26, all weekly expiry.
33. Other strategies I have updated in Twitter.
34. If 11180 is crossed in Nifty future, then one may buy 11200CE and sell 2X11400CE.
35. If 11180 is not crossed until the end of the day, then one can buy 11200CE and sell 2X11350CE.
36. We can expect some announcements from Govt side next week after Aug 15 speeh by PM.
37. Even when Nifty was below 11000, Nifty 11000PE had the highest OI.
38. On Friday morning I suggested selling 10800PE, I sold it at Rs 60. Now it is trading at Rs 53, Rs 60 can be kept as a SL.
39. Saudi Aramco stated that the talk is at initial stage, do not know how much market will believe RIL stake sale.
40. If market believes then it is good for banks also.
41. Nifty future may trade between 11080 and 11200.