Pre Market Report, Feb 3, 2020 | Stocks and Commodities

Feb 3, 2020
Time: 8.15 am




Pre Market Report:

1. Our markets fell on Saturday due to budget disappointment.
2. The fall was more than expected.
3. Bank Nifty fell more than 1000 points.
4. Changes in personal taxation is not good for housing sector.
5. So real estate stocks fell and real estate index fell more than 8%.
6. Mid caps and small caps that were trying to stabilise after two years of bear run also came under severe selling pressure.
7. Many stocks hit 52 week low or multi year low.
8. ITC fell below 220.
9. Now fine prints started coming from budget.
10. Lot of intrepretations and mis intrepretations, clarifications.
11. China opened around 8% down and stabilising.
12. Domestic Institutions will be playing major role both in India and China.
13. We also need to see how Rupee opens, if there is more depreciation, it will scare the FIIs.
14. Those who are out, based on my advise, please continue to stay away for one or 2 more days.
15. Watch for FII data today, DII data today.
16. If FII data is bad, it is time to be cautious. If DII data is too good, then also it is time to be cautious.
17. Too good figure rom DII means, LIC entered the markets (instructed by Govt).
18. In that case markets may fall again.
19. So volatility may continue for next few days.
20. We need to see how this Corona virus and RBI policy goes.
21. European and US futures are higher.
22. So we may consolidate between 11600 and 12000 for the rest of the series.
23. Going by WhatsApp forwards, it seems that Reliance will be under pressure and that will check up side.
24. SGX Nifty is trading around 11680.
25. Nifty 11700 was the level before Parliament elections in 2019.
26. Post Corporate tax cut also that was the level.
27. So markets may try to consolidate around 11700.
28. Now the focus will turn to Corona Virus and RBI policy.
29. If you feel that markets are not going to fall too much from here, you can buy Nifty 11700PE and sell 2X11400PE.
30. Lower break even will be 11100.
31. There is no risk on the upside.
32. Be ready for high volatile markets as both FIIs and DIIs will be very active today.
33. Play only hedged positions, if you want.
34. If markets close firmly in Green, then you can buy 11700CE and sell 2X12000CE. In that case upper break even will be 12300 and there will be no down side risk.
35. Nifty future should take support at 11620, resistance may come at 11780.