Pre Market Report, January 28, 2020 | Stocks and Commodities

January 28, 2020
Time: 7.30 am

Pre Market Report:

1. Venue for Mumbai Workshop is Hotel Bawa International, near airport.
2. Yesterday Corona virus spread to all Global markets.
3. Here we have been seeing huge selling in large cap stocks for the last few weeks and that continued.
4. Reliance, HDFC Bank, Kotak Bank, HDFC, ITC, all index heavy weights fell.
5. HDFC Bank and HDFC fell more than 2% each was surprising.
6. HDFC came out with results which is not good, one time gain propelled the profits.
7. European markets fell by 2 to 3%.
8. Dow opened around 500 points down but traded with a loss of 400 to 500 points through out the day.
9. There was no institutional selling in the last hour.
10. Right now Dow future is higher by about 100 points.
11. Asian markets are down as most of the Asian markets were closed yesterday.
12. SGX Nifty hit a low of 12056 but now recovering and trading with 20, 25 points loss.
13. FIIs have sold for Rs 439 crores and it is not a big figure.
14. DIIs just bought for Rs 10 crores.
15. Money seems to be moving from Large Caps to Small Caps and Mid Caps.
16. Many mid and small cap stocks hit 52 week high yesterday.
17. IGL shot up nearly 20% in one month. All Gas stocks doing very well.
18. Large cap pvt sector banks may be in for re-rating and that is not good for Bank Nifty.
19. Even ICICI Bank, after such a good results, ended almost flat.
20. No need to talk about IndusInd Bank which has fallen more than 20% after the results, from around 1600 to below 1300.
21. Maruti, Manappuran Finance, HDFC will be in focus today.
22. PNB Housing results came and fell sharply, that dragged down HDFC and LIC Housing.
23. Any negative reaction in HDFC will affect LIC Housing also.
24. On the contrary, who knows, since there was no huge selling by FIIs, HDFC and HDFC Bank may lead the short covering rally also.
25. Both seems to be over sold in short term.
26. Reliance is not helping the markets, even after good results, it has fallen more than 100 Rupees from results day high.
27. Last week of the expiry, as usual Gamma effect is ruling the markets.
28. Nifty makes 250 to 300 points move on either side during the last week in volatile periods.
29. This January, US-Iran issue and Corona Virus issue, both dragged the markets down.
30. Nifty future should take support around 12080.
31. Otherwise, it will slide towards 12000.
32. The Love for 12K continues for the last many months.
33. There is no need to talk about resistance. In case, if Dow futures recover some more ground, European markets open higher, then we may see some buying.
34. In that case, resistance will be around 12180.