Pre Market Report, November 14, 2019 | Stocks and Commodities

November 14, 2019
Time: 8.10 am

Pre Market Report:

1. Makets are consolidating as expected.
2. But the negative bias is puzzling.
3. Global cues are not bad.
4. But Nifty future fell from 12069 to 11846 in two trading sessions.
5. I expected Nifty future to take support at 11880 yesterday.
6. That is this fall is happening against huge buying by FIIs in Cash market.
7. FIIs keep buying for more than Rs 500 crores everyday.
8. Bank Nifty has been highly volatile.
9. On Monday, Bank Nifty shot up 600 points from intraday low.
10. Yesterday it fell more than 600 points from intraday high.
11. US markets closed slightly positive.
12. Asian markets are mixed.
13. IIP data from China is very bad, came at 4.7% Vs expected 5.4%.
14. SGX Nifty is trading about 20 points higher.
15. Markets corrected from near all time high.
16. First attempt will always be met with resistance and selling.
17. If markets recover from here, then the next attempt, Nifty is likely to take out all time high.
18. But when it will happen, nobody knows.
19. I expected that to happen in November, but it does not look like that now.
20. We have only 11 more trading sessions in this series.
21. Inflation data came higher than expected, mainly due to onion prices.
22. Nifty is likely to expire between 11800 and 12000.
23. I will not be surprised if there is some short covering in the last one hour.
24. Reliance and TCS saved the market from collapsing yesterday.
25. Yesterday Bank Nifty fell about 600 points and that alone contributed about 200 point fall in Nifty.
26. Otherwise, Nifty should have been above 12000.
27. So Bank Nifty will have to recover for markets to move higher.
28. Govt has asked telecom companies to pay the dues as per supreme court rule.
29. Yesterday that was the reason for Bank Nifty fall, as per CNBC.
30. If that is the case, the news is out, it has already been factored in.
31. We can expect some recovery today in bank Nifty.
32. But markets are going to be volatile due to weekly expiry.
33. I sold 11800PE and 12000CE in Nifty.
34. I sold 30000, 30200, 30500PE and 31000, 31200, 31500CE in Bank Nifty.
35. Bank Nifty 30500PE is in trouble, I have to fire fight that position.
36. If there is a gap up of about 100 points, then I will be safe, can put SL.