Pre Market Report, February 13, 2020 | Stocks and Commodities

February 13, 2020
Time: 8.15 am


Pre Market Report:

1. US markets closed at record high once again.
2. But China revised Corona infected people numbers higher by 15000.
3. As soon as this news came, Dow futures fell.
4. Asian markets are mixed.
5. Hong Kong is down while many other Asian markets are higher.
6. Yesterday I expected resistance at 12220.
7. But Nifty future moved even higher.
8. FIIs have taken huge long positions in stock futures.
9. Both FIIs and DIIs were net buyers in Cash market.
10. Now FIIs are covering their short positions in Index Futures also.
11. Mostly I sold only Puts.
12. Yesterday around closing time, sold Bank Nifty 31800CE at Rs 25.
13. Sold huge amount of 12100PE for today expiry in Nifty in the morning itself.
14. Sold at Rs 10, closed at Rs 5.
15. Today it is likely to open below Rs 2.
16. SGX Nifty is almost flat, trading between 12220 and 12230.
17. Kotak Bank and Reliance, both have seen good short covering.
18. SBI is very volatile as Card Business will be coming with IPO.
19. Yesterday's bullishness was surprising.
20. Bank Nifty did very well, despite PSU Banks, YES Bank, IndusInd Bank did very badly.
21. YES Bank will be in focus as it will not declare results by Feb 15, deadline for Q3 results.
22. Now it will declare results on March 14.
23. IIP data came in negative at -0.3% and Inflation was above 7.5%.
24. This is a bad combination, higher inflation and lower IIP.
25. But liquidity in the markets and huge short positions by FIIs will keep the downside limited.
26. Now, for the rest of the series, Nifty 12000 will be a very good support.
27. On any dip, you can sell 12000PE.
28. Nifty future may trade between 12150 and 12280.