Pre Market Report, August 6, 2019 | Stocks and Commodities

August 6, 2019
Time: 8.15 am

Pre Market Report:

1. US markets fell the most in 2019.
2. Yesterday's fall reminds me of 2018 Feb 5 fall.
3. On that day, due to some Inflation data, Dow fell more than 1000 points and after market hours fell another 1000 points.
4. Yesterday Dow fell about 800 points.
5. After market close, US has stamped China as Currency Manipulator.
6. Then Dow fell another 800 points.
7. SGX Nifty opened around 150 points lower.
8. Later China fixed currency band better than expected.
9. Dow future recovered about 500 points.
10. SGX Nifty also recovered about 50 points.
11. Now with yesterday's fall, Nifty has retraced 61.8% Fibonacci retracement. 
12. But markets are not respecting any technicals in this ferocious fall.
13. Yesterday once again FIIs have sold for Rs 2000 crores.
14. With this I think they have sold for 22K crore in last one month.
15. Everyday DIIs match or even buy more than what FIIs sell.
16. Yet market keeps falling.
17. Everyday we hope that previous day's low will not be broken.
18. But it is broken almost on everyday basis.
19. Many blue chip stocks lost 20 to 30% in last one month.
20. SBI high 373.55 on budget day, yesterday below 295, many other stocks like Titan, India Bulls Housing, etc.
21. I am talking only about Nifty 50 stocks.
22. Ahead of results all stocks are hammered.
23. We should be happy if markets take support at yesterday's low.
24. I am planning to close my short trades if Nifty trades below 10800.
25. Markets may turn around after RBI policy.
26. Weekly options is a good idea, yesterday I sold 28500CE in Bank Nifty weekly options at Rs 70, it closed around Rs 40.
27. Due to RBI policy, premiums are high.
28. RBI may go for 50 basis point cut and if there is any short covering, Bank Nifty may shoot up.
29. I guess this may happen as Govt started focusing on stock market crash.
30. Nifty future may trade between 10750 and 10900.