Pre Market Report, September 4, 2019 | Stocks and Commodities

September 4, 2019
Time: 8.15 am

Pre Market Report:

1. US markets closed lower.
2. But China made some positive comments about HK protesters.
3. China also fixed Yuan midpoint as 7.08.
4. So most Asian markets are trading with positive bias.
5. But we have our own problems.
6. Rupee has depreciated almost by Rs 1.
7. That shows very clearly that FIIs are selling and moving the funds out.
8. That is really a very bad news.
9. Yesterday was a Terrible Tuesday.
10. IIP data, GDP data, GST collection, Auto sales data, US-China Trade tariff hike, everything was negative.
11. I said when everything looks negative, that is when positional short sellers will like to square off their positions and that may lead to some short covering rally.
12. But that has not happened.
13. Since there was no short covering until 2.45 pm, further selling came.
14. Nifty fell more than 100 points in last 45 minutes.
15. Now SGX Nifty is trading about 50 points higher due to positive Asian cues.
16. Moreover, worst seems to be over when it comes to Economic data.
17. Today Services PMI data is due at 10.30 am.
18. Then the next big data is US jobs data this Friday.
19. HK protests, US-China Trade War, India's mismanagement of Economy, nothing seems to change but after some time people will get used to them.
20. Since Nifty future was trading around 10920 for most part of the day and fell from there in the last 45 minutes, that will become resistance now.
21. Yesterday it was Reliance that fell about Rs 50.
22. Nifty fell mainly due to index heavy weights like Reliance, HDFC, HDFC Bank, etc.
23. Bank Nifty shot up 1200 points from 26800 last week and now it is back to 26800.
24. If yesterday's low is broken, then next target will be 10650.
25. On any rise, it is better to sell Call options.
26. It will be a good idea to sell Call options of 11200 and above.
27. Can sell 11000CE for tomorrows expiry also.
28. Nifty is not likely to expire above 11000 tomorrow.
29. We have double whammy of Local cues and Global cues.
30. One we have fallen so much in one day, two we are at support level, so markets may consolidate here for few days.
31. Now Govt seems to be making right kind of noises, hope short sellers dare not add more shorts.
32. FM's second meet where PSU Banks merged was not taken by markets positively.
33. She may make some more announcement this week.
34. The much promised measures for Housing has not come.
35. This time if they stop at Housing level, then markets will be disappointed once again.
36. Some concrete measures are required.
37. FIIs have sold for Rs 2016 crores and DIIs have bought for Rs 1250 crores in Cash market.
38. Now a days DIIs are not able to match FII selling.
39. Expect more volatility in this month.
40. Nifty future should be trading between 10800 and 10940.