Pre Market Report, February 12, 2020 | Stocks and Commodities

February 12, 2020
Time: 8.15 am

Pre Market Report:

1. US market closed flat.
2. Asian markets are mostly in Green.
3. SGX Nifty is around 12160, about 30 points higher.
4. Yesterday, markets met with selling pressure at higher levels.
5. AAP got more seats than expected.
6. But Congress got 0 seats in Delhi is really very bad.
7. This is the 7th defeat for BJP in state elections.
8. Buy Delhi is a tiny part and anyway mostly controlled by Central Govt.
9. So in market perspective, loss of BJP is not a big deal.
10. RBI cutting CRR, China also injecting liquidity, FIIs started covering some of their shorts, all making markets to move higher.
11. Still FIIs are in huge short, they will not square off unless there is a huge move on either side.
12. So we can expect some sharp move on either side, may be towards the end of the series.
13. Corporate results are coming to an End.
14. Last leg of the results are not really impressive.
15. IndusInd Bank may come under pressure due to downgrade.
16. Today ahead of IIP and Infltion data, markets may be choppy towards the end of the day.
17. Corona virus is a worry, still not subsiding.
18. Expecting some positivity, due to huge shorts by FIIs in index futures, I bought March 12200CE and sold 12400CE and 12500CE.
19. Will be selling Bank Nifty 33000CE in March if Bank Nifty moves higher in today's trade.
20. For this series, I only sold Put options from 12000 to 11200PE.
21. In March series also, I sold 11700, 11400, 11000PEs.
22. Bought some small quantity of 12000PE for hedging.
23. So far, profits have been very good.
24. Over all maintaining bullish view only.
25. FIIs were net sellers in Cash market but buyers in Futures market.
26. Reliance is looking good after huge sell off from 1620 to 1420.
27. Other stocks like L&T, ITC, Maruti all still struggling.
28. Nifty may trade between 12100 and 12220.