Pre Market Report, November 18, 2019 | Stocks and Commodities

November 18, 2019
Time: 8.10 am

Pre Market Report:

1. US markets hit a record high on Friday.
2. Dow crossed 28000.
3. But Asian markets are mixed.
4. Nifty met with selling pressure in the last half an hour on Friday.
5. Now SGX Nifty trading almost flat.
6. As expected Nifty has been consolidating for the last few days.
7. But Essar Steel supreme court verdict is very good for banking stocks.
8. Nifty was up only 23 points but Bank Nifty was up 258 points on Friday.
9. Banks are likely to report very good results in the coming quarters.
10. One, they will not require to keep more provisioning, two, they can write back some of the provisioning, three, the loans will become performing loan as the owner changes.
11. Bloomberg said, World Economy Recovery on the cards in First Quarter of 2020"Markets need a trigger to break out of 12000 and cross all time high.
12. This supreme court verdict will be a trigger or not, we have to wait and see for next few days.
13. This week expiry, Nifty 11800PE has highest open interest.
14. We can expect Nifty to take support around 11800.
15. In fact last week it took support there.
16. Nifty 12000 seems to be a huge resistance for now.
17. This series, Nifty future crossed 12000 two times.
18. But could not sustain, met with selling pressure.
19. Last two days, heavy selling by FIIs in Cash market is a concern.
20. Nifty will hit all time high when we expect te least possibility of that happening.
21. Now we keep expecting, it may not happen.
22. I sold Nifty 12100, 12200, 12300, 12400 call options expecting this consolidation.
23. But I thought at least intraday, one time, all time high will be tested.
24. So far it has not happened.
25. But we still have 9 more trading sessions, it can happen.
26. Telecom companies will be in focus after FM comment.
27. Nifty future may trade between 11880 and 12020 today.