Pre Market Report, December 9, 2019 | Stocks and Commodities

December 9, 2019
Time: 8 am

Pre Market Report:

1. On Friday, markets broke down.
2. Birla's statement that Idea will have to file for bankruptcy if there is no relief from Govt, triggered the down fall.
3. Banks have lent about Rs 1 lakh crore which may not come back if Idea files for bankruptcy.
4. PSU Banks, particularly SBI took heavy beating.
5. SBI has been a strong stock due to good results, SBI Card issue, UTI AMC listing, etc.
6. Just in 2 to 3 days, if fell almost 10% from Rs 350 to Rs 320.
7. Surprisingly both HDFC Bank and Kotak Bank traded in Green of Friday.
8. FIIs have sold in Cash market just after buying for one day.
9. They have taken huge short positions in F&O also.
10. They bought put options for huge amount.
11. Friday evening US jobs data came and US markets shot up.
12. But yesterday China's exports data came which was not good.
13. Exports were down more than a percent in November.
14. That is why Asian markets are not as enthusiastic as US.
15. Both China and Hong Kong trading negative now.
16. SGX Nifty is also down by 10, 15 points.
17. We need to see whether the Friday's fall is one off issue trggered by a bad news.
18. Or it is a trend reversal.
19. If there is a follow through selling today, then I will turn bearish.
20. Maruti increased production last month which is good news for auto stocks.
21. Auto stocks fell as scrappage policy was postponed and RBI rate ct did not come.
22. If Nifty futre breaks 11920, then I am planning to sell ATM Call options or even ITM Call options.
23. Reliance is strggling at higher levels.
24. Markets corrected significantly after hitting all time high.
25. Markets should stabilise and should not fall much from here.
26. But next one week, there are lot of news flow.
27. Fed meeting, US-China trade deal, IIP, Inflation data, etc.
28. So markets may be volatile this week.
29. Nifty future will face stiff resistance at 12020.
30. Nifty future may trade between 11900 and 12020.