Pre Market Report, January 10, 2020 | Stocks and Commodities

January 10, 2020
Time: 8 am




Pre Market Report:

1. Yesterday we have seen huge short covering.
2. As I stated earlier, we are buying a lot of Crude oil from Iran.
3. Iran developments affect our markets more than any other market.
4. Wednesday low to Thursday high, Nifty shot up nearly 400 points and Bank Nifty nearly 1200 points.
5. US markets hit all time high yesterday.
6. Asian markets are positive.
7. SGX Nifty is consolidating after the huge move yesterday.
8. Corporate results season begins with Infosys declaring results today after market hours.
9. Also IIP data will come today evening.
10. So the real action will begin next week.
11. This week is all about Iran.
12. Markets may consolidate today with some positive bias.
13. Few days before I suggested selling JSW Steel 260PE.
14. Yesterday JSW Steel was the top performer.
15. Auto and OMC stocks shot up as Crude fell to pre crisis levels.
16. If this has happened 10 years before, markets would have crashed.
17. But now the relevance of Gulf countries is much less.
18. Earlier Oil was the central theme of world politics.
19. Now with US becoming largest producer of oil, middle east dependence has come down.
20. That is why Global markets did not react much.
21. We have reacted more than the Global markets, both on down side and up side, due to our dependence on Iran.
22. Just like what US has done, India will have to do something to become energy independent.
23. Until then India can not dream of good economy.
24. Until then we can only talk about 5 trillion economy but can not achieve.
25. I said the range for January series is between 12000 and 12500.
26. We are at the centre just ahead of corporate results.
27. If corporate results are good, then we can expect Nifty to touch 12500.
28. There are some news report that suggests PM is taking extra effort in preparing the budget.
29. If they can do some positive shock, just like corporate tax cut, then we can even touch 13000 by March 31.
30. Today Nifty future may trade between 12220 and 12340.