Pre Market Report, August 14, 2019 | Stocks and Commodities

August 14, 2019
Time: 7.50 am

Pre Market Report:

1. Yesterday our markets were highly volatile.
2. Nifty fell 100 points then shot up 100 points then fell 200 points.
3. Bank Nifty future fell about 800 points.
4. Nifty future came to discount.
5. H2B2 shares came under severe selling pressure.
6. On Friday no positive outcome came from FPI meeting with FM.
7. That could be a main reason for this kind of selling in all FII concentrated stocks.
8. But at the end of the day FIIs have sold just for Rs 600 crores.
9. This kind of fall is not warranted for such a small selling.
10. But DIIs did not match the selling of FIIs.
11. That could be one reason for market fall as there are no buyers.
12. Later in the day, Trump announced postponing tariff hike for some goods from China.
13. Then US markets shot up.
14. Today morning Asian markets opened firmly in Green.
15. But some markets like Japan, Australia gave up half of the gains already.
16. Hong Kong is up just 300 points despite air port problem has disappeared.
17. SGX Nifty is not making any headway.
18. Govt operationalised the partial credit guarantee scheme for NBFCs and HFC.
19. There was a news report in Economic Times that Govt is working on stimulus package.
20. According to that report, revisit of FPI surcharge, Dividend Distribution tax, LTCG, Tax on share buyback, etc are considered.
21. Day before yesterday I sold 11300CE in Nifty. Yesterday sold 11100, 11050CEs.
22. Day before yesterday sold 27500PE in Bank Nifty at Rs 35, got out at Rs 20 as SL triggered.
23. One day before you can sell OTM call options, most of the time markets will open moderately higher or lower and consolidate and big move will come only after 2.30 pm.
24. Yesterday I sold even 11000CE at Rs 20 in some accounts in last few minutes.
25. It closed at Rs 11, will put SL at Rs 20 as soon as markets open today.
26. SGX Nifty is not even up by 20 points.
27. But SGX Nifty has not been an indication for the last few weeks.
28. My Gut feeling says that there will be some short covering and Nifty may expire above 11000.
29. Reliance will have to watched keenly, yesterday's rise was due to short covering, what is going to happen after short covering is over?
30. Is it going to stabilise or fall a little bit.
31. If it falls, that will dent the sentiment in overall market.
32. Saudi Aramco deal could have been engineered by Govt.
33. There are multiple benefits for Govt. (1) Large amount of money will be paid back by RIL to banks and that will help banks to lend more to others. (2) At a time when Pakistan is playing muslim cards in Kashmir issue, Middle East strategic relation is good for India.
34. Yesterday Auto stocks and Banking stocks came under severe selling pressure.
35. Motherson Sumi fell 9% after results. Bharat Forge also fell significantly.
36. These two are the darlings of midcap rally few years before.
37. Global tensions make Yen more expensive, Yen shot up about 8% in last few weeks, as Maruti pays royalty to Suzuki in Yen, Maruti fell more than other Auto stocks.
38. H2B2 shares fell as FPI meeting with FM did not give any positive indication.
39. Just now Economic data that came from China has not been good, very bad.
40. Industrial production came much below expectation.
41. We can expect markets to open slightly higher and volatility will rule the market.
42. Ahead of holiday, there will be some sharp move in markets towards the end of the day.
43. Will be happy if that sharp move is on the higher side.
44.  Yesterday my prediction has gone terribly wrong as I was focusing only on Global cues.
45. Today Nifty future is likely to trade between 10900 and 11000 in the first half and last few hours difficult to predict.