Pre Market Report, October 11, 2019 | Stocks and Commodities

October 11, 2019
Time: 8 am


Pre Market Report:

1. Day before yesterday Bank Nifty was up by 1300 points from intraday low.
2. Yesterday it was down by more than 850 points from previous day's close.
3. That shows the volatility.
4. And this happens without any news flow.
5. Usually this huge volatility happens in the process of topping out or bottoming out.
6. Hope this is a process of bottoming out.
7. In the first week of October, Nifty future was trading at Rs 70, 75 premium.
8. Now it is only about 10 points.
9. Logically markets should bottom out here.
10. So the probability of market moving higher is more than the market moving lower from here.
11. However short term fluctuations will always be there.
12. Watch for 11320 level, if Nifty future trades above this level, there will be some short covering.
13. Even yesterday it was Bank Nifty that brought the markets down.
14. Nifty has out performed.
15. In a normal market, if Bank Nifty falls 800 points, Nifty will fall more than 250 points.
16. Results season started with IndusInd Bank and it has not started well.
17. TCS has declared special dividend, we have to see the reaction of IT stocks today.
18. Today evening IIP data and CPI inflation data are duw.
19. We can expect some sharp move towards the end of the day.
20. US_China may announce some kind of interim deal so that there will be no more escalation of trade war.
21. FIIs are still selling, sold for about Rs 5000 crores in October.
22. But the intensity is reduced.
23. There will be meaningful rally only when they turn buyers.
24. Be ready for some more volatility until then.
25. Nifty future may trade between 11250 and 11380.