Pre Market Report, February 17, 2020 | Stocks and Commodities

February 17, 2020
Time: 8.20 am



Pre Market Report:

1. US markets closed mixed n Friday.
2. Asian markets are mixed.
3. Japan is down as its GDP came at minus 6.3%.
4. China corona virus affected people crossed 70K.
5. But incremental death has come down.
6. So we can assume that the virus effect has peaked out.
7. Here, our worry is the local cue.
8. Once this AGR news came, markets fell.
9. We need to watch how IDEA performs today.
10. IDEA has informed exchanges that it will pay the AGR dues.
11. But nobody knows how?
12. This kind of contradictory news will only create volatility in markets.
13. Even the day before, when it declared results, IDEA doubted its survival.
14. Nifty has already fallen 150 points and Bank Nifty has fallen about 700 points after this news.
15. So we can assume this news has already been factored in.
16. But if IDEA files for bankruptcy, there will be some knee jerk reaction.
17. SGX Nifty traded below 12100 on Friday night.
18. Now since Hong Kong and China recovered from lows, SGX recovered about 30 points, now trading at 12120.
19. FIIs have sold for about Rs 700 crores in Cash market while DIIs bought for about Rs 200 crores.
20. FIIs are bearish in F&O and continue to pile up their short positions.
21. Last time, Nifty future took support around 12000.
22. Today US markets are closed.
23. So there will be no big Global cues when our markets open tomorrow for trading.
24. So we have to see whether banking stocks stabilise or fall further.
25. IndusInd Bank hit 52 week low on Friday.
26. Reliance, IDEA, Bharati will also be in focus.
27. That is a stock to watch today.
28. I sold 31800CE and 32000CE in Bank Nifty weekly options.
29. Nifty future may take support at 12080. (Failing which, it will slide to 12020)
30. Resistance may come at 12220.