Pre Market Report, September 3, 2019 | Stocks and Commodities

September 3, 2019

Time: 8.25 am

Pre Market Report:

1. Our markets rallied on Friday afternoon.
2. But after market hours, DP data came at 5% which was a shocker.
3. It was expected around 5.7%.
4. But that day night, none of the Indian ADRs fell.
5. But SX Nifty fell on Friday night.
6. It fell much more on Monday as there was no new good news about US-China trade war and new tariff came into effect on Sep. 1.
7. We had many bad news, (i) 5% GDP data, (ii) Lower GST collection, (iii) Very bad monthly auto sales data, (iv) Lower Manufacturing PMI data, (v) New tariff effect both in US and China.
8. Though Asian markets stabilised at some point, SGX Nifty fell continuously.
9. It stabilised only at Friday's low.
10. But this time Govt seems to active in damage control.
11. There are some news floating around that GST may be cut for autos.
12. As usual NS said it is not in her hand but said they are requesting GST Council to consider rate cut, earlier she just said it was not in her hand but did not make any representation to GST Council.
13. But GST Council meets only on Sep 20 which is very far away.
14. So we have to see how auto stocks move today, that holds the key for market movement.
15. So it is time to buy at Friday's low and time to sell at Friday's high.
16. That strategy may work for some more time.
17. I still believe that 10800 will hold as long as Govt is taking some actions.
18. So far no meaningful action has come from Govt.
19. There was talk of measures for Housing but FM just talked about PSU Banks merger.
20. Though merging is good, at this point of time, that is totally irrelevant.
21. Bank Nifty is looking weak compared to Nifty.
22. Kotak Bank is looking more weak.
23. If market gaps down, following strategy is good: (i) +1X10900PE, -2X10600PE.
24. Everything looks bearish, sometimes markets bottom out at this stage.
25. Let us see whether that happens today.
26. For all long positions, Friday's low should be the SL.
27. I am not expecting much downside from here.
28. I did a strategy: December +1X11000PE, -3X10000PE.
29. Will make some profit as long as Nifty is not falling below 10000.
30. But profits will come very slowly.
31. Today Nifty future may trade within Friday's range.