Pre Market Report, January 29, 2020 | Stocks and Commodities

January 29, 2020
Time: 8 am



Pre Market Reports:

1. Yesterday last one hour fall was very bad.
2. Nifty future hit a low of 12038.
3. Nifty future fell more than 100 points and Bank Nifty future fell more than 400 points from intraday high.
4. Reliance has fallen about Rs 50 and ICICI Bank has fallen by about Rs 10, two companies which declared very good results.
5. Reliance has fallen Rs 150 from intra month high.
6. So the correction is not only due to Corona Virus.
7. There is some thing more than that.
8. ITC hit 3 year low.
9. SBI fell in the last one hour but recovered also.
10. FIIs have sold for Rs 1358 crores in Cash market.
11. DIIs have bought for Rs 711 crores in Cash market.
12. This is the first significant sell from FIIs and first significant buy from DIIs.
13. Markets will be going to budget with pessimism.
14. That is always good, if there is any positive news in budget, markets can move higher.
15. Otherwise, markets may stabilise and may not fall much.
16. With significant selling in Reliance, HDFC Bank, Kotak Bank, ICICI Bank, ITC, Maruti, i think we are somewhere near the bottom for short term.
17. Nifty future should not break yesterday's low until budget.
18. Usually ahead of a big event, like budget, people will book profits.
19. Maruti results came in the afternoon, markets fell after that.
20. I am holding Maruti in Cash market, bought at Rs 9000 (Bought after a correction of 10% from Rs 10000), every month I have been selling Call options and collecting at least Rs 200 premium.
21. This reduces my cost price. This month I sold 7800CE, 7500CE, 7400CE, 7300CE (not all at same time)
22. Hong Kong markets opened after many days of holidays.
23. It opened around 3% lower and stabilising.
24. SGX Nifty is trading slightly positive, up by 10, 20 points.
25. Many times I have seen, whenever there is a strong down trend, expiry happens at the lowest point.
26. Hope that does not happen this series.
27. Infosys is the only stock that has been doing well after the results.
28. Bank Nifty is down by more than 2000 points from all time high.
29. So we can expect some significant move only after budget.
30. I sold Call options aggressively for this series.
31. Nifty 12200, 12250, 12300CEs and Bank Nifty 31000 to 31500CEs.
32. Not expecting any significant up move.
33. Mid caps and Small caps are doing well, it is only index heavy weights that are dragging the markets.
34. No one would have thought of such a under performance by Reliance, that too without any reason.
35. IndusInd Bank fell Rs 350 after results, heading towards 52 week low.
36. But due to Global cues, we can expect our markets to stabilise with positive bias.
37. Baj Fin, Baj FinServe will be in focus.
38. SBI will be in focus.
39. Nifty future may trade within yesterday's range.
40. Bank Nifty may also trade within yesterday's range.