Pre Market Report, December 10, 2019 | Stocks and Commodities

December 10, 2019
Time: 8.10 am

Pre Market Report:

1. Yesterday, once again markets were highly volatile.
2. Volatility came mainly due to SBI.
3. There were rumours YES Bank will be merged with SBI.
4. It was denied by SBI, still SBI moved about 3% up and down.
5. Reliance has supported the Nifty.
6. Auto stocks also did well.
7. Mid caps did very well.
8. The sentiment was not good due to mutual fund inflow data.
9. There is huge out flow from mutual funds.
10. When markets hit all time high, some profit booking is expected.
11. So that is not a big issue.
12. Over night, US markets closed negative.
13. Asian markets are mostly negative.
14. South Korea is up, may be due to local factors.
15. SGX Nifty is up slightly.
16. China Inflation data came, better than expected.
17. Hge OI added at 11900PE, so that is likely to be very good support for this week.
18. Since October 29, Nifty has been trading between 11800 and 12200.
19. We can expect some big trend only when this range is broken.
20. That is not likely to happen in this series.
21. Markets met with selling pressure when Nifty crossed 12000.
22. Nifty future should cross 12020 decissively for the bull party.
23. GST Council may hike the GST rates on Dec 18 meeting and that may be negative.
24. Two stocks that were very highly volatile in the last few days: SBIN and YES Bank.
25. YES Bank is still in trading ban.
26. Today their board meets for fund raising.
27. So today also it is likely to be volatile.
28. Both DIIs and FIIs were net buyers in Cash market.
29. That may support the market.
30. I have long position in YES Bank, average price Rs 60, sold 65CE, 70CE, 75CE, 80CE and 40PE (To average if it falls below 40).
31. Due to trading ban, can not adjust the positions.
32. Friday sold 32500CE in Bank Nifty, yesterday sold 32000CE.
33. Nifty future may trade between 11920 and 12040.