Pre Market Report, September 12, 2019 | Stocks and Commodities

September 12, 2019
Time: 8. 10 am

Pre Market Report:

1. China delayed tariff hike for some US products.
2. That was the reason for positive markets yesterday.
3. US markets also closed higher.
4. After US markets closed, US reciprocated by saying US is also delaying tariff hike against China for 2 weeks.
5. So both US and China are making some efforts to bring down the trade war fear.
6. Here in India, though Govt is very slow, they are making some right noises.
7. We have to see whether they really do something meaningful.
8. FII selling is also subsiding.
9. Yesterday FIIs bought for Rs 267 crores.
10. Yesterday it was a calm trade except for last 20 minutes.
11. Last 20 minutes Bank Nifty fell more than 100 points and Nifty fell more than 40 points.
12. Now SGX Nifty is trading around 11070.
13. Max Pain for Nifty is at 11000 and for Bank Nifty at 27700.
14. Huge OI added at 11000PE. So that may be a good support.
15. In Bank Nifty huge OI added at 27500PE.
16. So we can expect Nifty future to trade between 11000 and 11150.
17. Bank Nifty future to trade between 27500 and 28000.
18. Today's expiry, ECB announcement today evening, IIP and Inflation data all will make trading volatile.
19. But one good thing is that yesterday Bank Nifty was up despite ICICI Bank and HDFC Bank under performing.
20. ICICI ADR was up 2.5%, it will be interesting to see how that opens here.
21. I sold Bank Nifty 27500, 27400, 27300, 27200PE and 10900PE, after 3 pm, sold some 10950PE also.
22. In Calls, just sold 28000CE.
23. In monthly options, sold 29000CE.
24. With right kind of political moves, both locally and Globally, we are moving higher.
25. Once again Nifty will face stiff resistance between 11150 and 11200.
26. To take that out, we need some real good news like GST cut for auto sector from 28% to 18%.
27. Be ready for volatile movements today.
28. Focus will turn to FII heavy counters as FII turned net buyers in Cash market.
29. In fact, HDFC Bank was up significantly in Pre Market yesterday but did not perform today.
30. Now we will the power of short covering, if everything goes well.