February 4, 2020
Time: 8.15 am
Pre Market Report:
Time: 8.15 am
Pre Market Report:
- US markets closed in Green, after a huge sell off last week.
- Asian markets are higher.
- SGX Nifty is also higher by about 20 points.
- Yesterday markets were highly volatile.
- But traded in a range of 11600 to 11750.
- FIIs have sold for Rs 1200 crores.
- That is not a big figure, considering the budget and Corona Virus.
- That was evident from Rupee movement.
- With world markets stabilising, FIIs not selling in huge quantities, yesterday's low should be the low for short term.
- Manufacturing PMI in India came at 8 year high.
- Even in other countries also, this data has been good.
- Even stocks like IndusInd Bank is stabilising.
- I sold Nifty 11400PE aggressively. In Bank Nifty, sold 29000PE.
- Yesterday sold 29000PE at Rs 300 and it closed at Rs 200.
- Reliance is not seeing any recovery as there was something bad for Reliance in the budget.
- The trading range for January was 12000 - 12500.
- Now for February, it may be 11600 - 12100.
- That is why, I sold 11400PE.
- Similarly, Bank Nifty should take support at yesterday's low of 29500.
- Yesterday, India VIX fell.
- That is the first sign of stabilising market.
- Sold 11300PE at Rs 59 in the last 15 minutes, it closed at Rs 52. Premium eroded by Rs 7 in a matter of few minutes.
- Markets should stabilise with positive bias.
- If there is any significant up move, then there is a danger of another wave of selling.
- With Budget and Corona Virus induced sell off is out of the way, now focus will turn to RBI policy on Thursday.
- Central banks all over the world may consider reducing rate to support the growth.
- Otherwise, Economies may slow down further, due to Corona Virus.
- If Nifty falls towards 11600, then sell PE at 11400 and below.
- If Nifty moves higher towards 12000 (which seems to be very difficult at this point of time) then sell 12200 and above CE.
- Today Nifty future may trade between 11680 and 11800.
Comments
Post a Comment