Pre Market Report, November 1, 2019 | Stocks and Commodities

November 1, 2019
Time: 8.15 am

Pre Market Report:

1. Yesterday Sensex hit all time high.
2. Day before yesterday Nifty junior hit all time high.
3. Even Nifty was at a striking distance from all time high.
4. But Bank Nifty has hugely under performed Nifty yesterday.
5. Late afternoon news came that China announced long term deal with US will be very difficult as long as Trump is the President.
6. Then immediately selling came, Bank Nifty fell about 400 points.
7. When the markets are near peak, any bad news, there will be huge profit booking.
8. US markets closed lower but the fall is limited considering the news flow.
9. Asian markets are negative, but they did not factor in this news yesterday.
10. We have already factored in the news yesterday itself.
11. So we may do better than Asian peers.
12. FIIs have bought for Rs 1870 crores in Cash market.
13. That is a decent buy figure.
14. Nifty is likely to trade between 11600 and 12400 in November series.
15. November is a short series with only 19 trading sessions.
16. No major news flow is expected.
17. So markets may not make big moves either side.
18. Auto stocks will be in focus ahead of Monthly Auto sales data.
19. Yesterday all private sector banks except YES Bank did badly.
20. If there is any significant up move, that should come from Private Sector Banks.
21. Since I am taking a view that markets will be range bound, I planning the following Strategy.
22. Bank Nifty sell 30000, 30500, 31000, 31500, 32000CE and 30000, 29500, 29000, 28500, 28000PE.
23. Will react whenever Bank Nifty makes 500 point move.
24. PSU Banks will also be in focus as SBI shot up 8% yesterday.
25. Nifty future may trade between 11880 and 12020.