Pre Market Report, September 16, 2019 | Stocks and Commodities

September 16, 2019
Time: 8 am

Pre Market Report:

1. There were two shocks over the weekend.
2. One is Terrorists attack in Saudi Aramco oil facility.
3. Second one was our FM press meet.
4. Crude oil shot up 12%.
5. At open it was up by 19% and trading in WTI crude was stopped for 2 minutes.
6. This rise is highest in the history of oil.
7. India in already struggling with its Economy and particularly Auto sector.
8. Now this news is not good for over all Economy and particularly Auto sector.
9. As a free market Economy, now Govt will hike the petrol prices.
10. Later when price fall, they will increase the duty.
11. This is what was happening for the last few years.
12. Today Auto, Airline, OMCs will come under pressure.
13. Reliance though beneficiary of rising Crude, will come under pressure due to its deal with Saudi Aramco.
14. SGX Nifty is down by 100 points.
15. India VIX will also shoot up.
16. Earlier two times Nifty reversed from 11100-11150 zone.
17. This time bulls were hoping for a break out of double top.
18. This Crude news has come as a Crude shock.
19. World markets are not bad as many countries are Oil producers also.
20. US has ordered to release SPR (Strategic Petroleum Reserves).
21. So today's trade will be dominated by Oil new only.
22. Banks may out perform while other Oil related stock are under pressure.
23. At noon, we will get WPI Inflation which will affect Bank Nifty.
24. This is India specific bad news.
25. So there is no point in looking for Global cues.
26. Nifty future should take support at 11000.
27. There is no need to talk about resistance.