October 10, 2019
Time: 8.15 am
Pre Market Report:
Time: 8.15 am
Pre Market Report:
- Yesterday markers saw short covering after falling for 6 consecutive sessions.
- The short covering was so powerful that Nifty shot up 250 points from intraday low.
- Bank Nifty shot up 1300 points from intraday low.
- The news came that China was looking for partial deal with US.
- That lifted sentiment across Europe and US.
- US markets closed higher yesterday.
- But just after US markets closed, China said there is no progress in US_China Trade talk.
- Immediately Dow futures fell 300 points.
- Now all recovered and Dow futures tradong only 20, 30 points.
- Yesterday despite such a powerful rally, FIIs have sold for about Rs 500 crores.
- DIIs bought just Rs 900 cores, the rally of 1300 points in Bank Nifty was puzzling.
- IndusInd Bank results will play a major role today.
- So today's Bank Nifty expiry will be very volatile.
- SGX Nifty is showing about 80 points gap down.
- Since Asian markets have recovered, we may not gap down so much here.
- US announced that it is looking for currency deal as part of China Trade deal.
- That lifted the sentiment and most Asian markets recovere their losses to trade in Green.
- Dow future also recovered about 300 points after this news.
- Only negative for us is the FII selling.
- So far, in October they have sold for Rs 4500 crores.
- They keep selling irrespective of news flow and market conditions.
- Another bad news is that the flow to MF from retail has come down.
- India Bulls rejection of merger with Laxmi Vilas Bank will put its share price under pressure.
- Many banks exposure to India Bulls group will affect Bank Nifty also.
- Reliance announcing Inter connect charges may be seen as negative for Reliance.
- Though their income may rise, they may lose customers.
- So Reliance, IndusInd Bank, IBull all will be in focus today.
- Be ready for another day of high volatility.
- Nifty future may trade between 11280 and 11400.
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