October 11, 2019
Time: 8 am
Pre Market Report:
Time: 8 am
Pre Market Report:
- Day before yesterday Bank Nifty was up by 1300 points from intraday low.
- Yesterday it was down by more than 850 points from previous day's close.
- That shows the volatility.
- And this happens without any news flow.
- Usually this huge volatility happens in the process of topping out or bottoming out.
- Hope this is a process of bottoming out.
- In the first week of October, Nifty future was trading at Rs 70, 75 premium.
- Now it is only about 10 points.
- Logically markets should bottom out here.
- So the probability of market moving higher is more than the market moving lower from here.
- However short term fluctuations will always be there.
- Watch for 11320 level, if Nifty future trades above this level, there will be some short covering.
- Even yesterday it was Bank Nifty that brought the markets down.
- Nifty has out performed.
- In a normal market, if Bank Nifty falls 800 points, Nifty will fall more than 250 points.
- Results season started with IndusInd Bank and it has not started well.
- TCS has declared special dividend, we have to see the reaction of IT stocks today.
- Today evening IIP data and CPI inflation data are duw.
- We can expect some sharp move towards the end of the day.
- US_China may announce some kind of interim deal so that there will be no more escalation of trade war.
- FIIs are still selling, sold for about Rs 5000 crores in October.
- But the intensity is reduced.
- There will be meaningful rally only when they turn buyers.
- Be ready for some more volatility until then.
- Nifty future may trade between 11250 and 11380.
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