Pre Market Report, October 25, 2019 | Stocks and Commodities

October 25, 2019
Time: 8 am

Pre Market Report:

1. Yesterday morning, markets were good.
2. But BJP got less seats than 2014 election in Maharastra and could not get majority in Haryana.
3. So sentiment turned bad slightly.
4. But the result was good for longer term.
5. Later Supreme Court ruling came about Telecom and Telecom stocks fell.
6. Since the dispute is to the tune of 92K crore, all banks that lend to telecom companies fell.
7. SBI is the largest lender and hence fell 5%.
8. Since all telecom stocks are in trouble, except JIO, Reliance hot up Rs 50 from low.
9. That saved Nifty from collapsing while Bank Nifty was down significantly.
10. The momentum was so strong last week and I thought Nifty could hit 12K in October expiry.
11. The momentum first spoiled by Infosys and Infosys contributed 120 points for Nifty fall.
12. Then this telecom news affecting Banks, Banks contributed to another 120 points for Nifty fall.
13. Otherwise Nifty could have been closer to 12K by now.
14. DTC may be taken up during next budget, so that is also a disappointment.
15. So market may consolidate or may even drift lower from here.
16. ITC came with good results.
17. Today SBI results will decide the Bank Nifty direction.
18. Overall corporate results are not bad.
19. Amazon results were not good, so US futures are down.
20. Asian markets are mixed.
21. SGX Nifty is down by about 30 points.
22. So we will start with negative bias.
23. Yesterday, for 3rd straight day, both FIIs and DIIs were net sellers in Cash market.
24. Yet Nifty did not even fall 1% on closing basis.
25. That shows the resilience of our market.
26. Since we have consolidated for 3 days, we should start moving higher.
27. If not, there will be some selling and Nifty can fall below 11500.
28. If markets are not recovering after SBI results, I am looking to cut my long positions.
29. I have already cut my Put positions in Nifty.
30. Nifty future may tarde within yesterday's range.