Pre Market Report, February 7, 2020 | Stocks and Commodities

February 7, 2020
Time: 8.15 am

1. US markets closed marginally higher.
2. China cut tariff against US.
3. But US markets have seen huge run up and that is why they could not move significantly higher after China Tariff cut news.
4. Asian markets are mostly lower.
5. Remember Corona Virus fear is gone but not the Virus.
6. US markets have gone much higher due to local factors.
7. Nifty also fell 800 points and almost two thirds recovered.
8. So we may consolidate between 12000 and 12200.
9. In fact, Nifty 12000PE has the highest open interest among Puts and 2nd highest open interest among Calls is at 12200.
10. Yesterday morning, I could not write blog.
11. But I told my friend Mr Sharath as well as Mr Patel, who came from Bangalore to watch my expiry trade, that RBI will not cut rates but will tinker with other measures to give positive surprise.
12. I expected some changes in CRR or SLR, etc.
13. But they have done something that fired NBFC stocks and some Banks.
14. SBI shot up 8% in 4 days.
15. Nifty shot up 480 points and Bank Nifty future shot up (exactly) 2000 points in 4 days.
16. Now all important events are out of way, markets are likely to consolidate.
17. SGX Nifty is almost flat with some negative bias.
18. Corporate results have been good.
19. It is budget and virus that brought the markets down.
20. Reliance has done exceedingly well after huge sell off.
21. Today evening US jobs data, next week IIP and Inflation data are the key events to watch for the rest of the month.
22. Yesterday FIIs have sold after buying just for 2 days.
23. Still FIIs hold 82% shorts in index futures.
24. So down side should be limited.
25. Today Nifty future may trade between 12080 and 12200.