Pre Market Report, October 31, 2019 | Stocks and Commodities

October 31, 2019
Time: 8 am

Pre Market Report:

1. Fed cut interest rate by 25 basis point which is in line with expectation.
2. US markets closed higher.
3. Asian markets are mixed.
4. SGX Nifty is trading close to 11900.
5. Just two weeks before it was 11100.
6. Earlier I said: In Nov 2018 when BJP lost all 5 state elections, FIIs started selling, sold for 10 weeks, later after Balakot attack, sentiment tuned, they started buying, Nifty shot up 1000 in March 2019, in one month. Similarly this time, FIIs started selling after a bad budget, sold for 10 weeks, Govt reversed their stand, when US-China partial deal announced, FIIs started buying. I said there is a possibility of 1000 point rally in one to two months. So far 800 point rally has come.
7. Yesterday FIIs have bought for more than Rs 7000 crores in Cash market.
8. Even if we consider Rs 5700 crore HDFC life sale, still it is more than Rs 1500 crores buy.
9. That is a significant buy as Nifty has already shot up so much.
10. Now we are at striking distance to all time high.
11. Now ITC, TCS also started performing well.
12. In fact now Nifty is looking stronger than Bank Nifty.
13. PSU Banks did well yesterday.
14. PSU Bank Index was up 3.74%
15. This physical delivery is making option prices quoting at unreasonable levels.
16. We can expect Nifty to expire between 11800 and 11900.
17. But volatility will be higher today.
18. As the markets shot up for the last few days, there could be some profit booking.
19. That can create volatility.
20. Bank Nifty was volatile yesterday also.
21. Nifty may trade between 11780 and 11920.