Pre Market Report, January 23, 2020 | Stocks and Commodities

January 23, 2020
Time: 8 am

Pre Market Report:

1. US markets closed mixed.
2. Asian markets are down.
3. Coron virus issue is still dominating Asian markets.
4. We have our own problems, in addition.
5. Large caps are still selling off.
6. Kotak Bank is the worst among them.
7. That is dragging both Nifty and Bank Nifty.
8. Yesterday Bank Nifty fell 500 points from intraday high to intraday low.
9. Bank Nifty has fallen 2000 points from all time high, hugely under performing Nifty.
10. If these top banks go for re rating due to results, then Bank Nifty can fall another 1000 to 2000 points.
11. But so far FIIs have not sold much.
12. Yesterday also, FIIs have sold just for Rs 176 crores.
13. DIIs have sold for Rs 326 crores, combined selling is about Rs 500 crores.
14. In short term, markets are over sold.
15. There is a possibility of some bounce back.
16. SGX Nifty is opening flat.
17. So we can expect flat opening and range bound trade until 2.30 pm.
18. I am expecting some sharp move on either side, after 2.30 pm.
19. If markets are in red, then this sharp move can happen on the higher side.
20. As usual. we have to be very careful on our expiry trades after 2.30 pm.
21. I am not expecting expiry Nifty above 12200 and Bank Nifty above 31000.
22. That is why yesterday I sold Nifty 12200CE and Bank Nifty 31000CE in huge quantities.
23. I also bought 30800PE and sold double the quantity of 30600PE. This strategy is safe up to 30400.
24. Will close this position if Bank Nifty (spot) touched 30800.
25. Do not know why ONGC and NTPC came under so much selling yesterday.
26. ONGC at 10 year low. Earlier I sold 120PE, was prepared to take delivery, if it falls below 120.
27. But when it fell below 120, was so uncomfortable, sold 120CE, to reduce the cost.
28. Axis Bank and L&T declared results after market hours. Axis seems to be good. L&T is in line.
29. Nifty future should take support at yesterday's low of 12110.
30. Resistance will come at yesterday's high of 12249.
31. Bank Nifty future also may trade within yesterday's range.