Pre Market Report, May 18, 2020 | Stocks and Commodities

May 18, 2020
Time: 8 am

Pre Market Report:

1. US markets closed slightly higher on Friday.
2. Asian markets are also marginally higher.
3. But SGX Nifty is down by about 50 points.
4. On Friday FIIs sold for Rs 2388 crores in Cash market.
5. FIIs have sold for more than Rs 4000 cores in last two days.
6. That could be one reason why SGX Nifty is lower.
7. Indian markets are looking very weak.
8. Particularly Banks and NBFCs are looking very bad.
9. Banking stocks fell by 10 to 20% in May series.
10. Nifty Future May series low is 9037 and Nifty future trading near this low.
11. Markets have clearly given "Thumbs down" to 20 lakh crore Economic Package.
12. But in short term, markets look oversold.
13. Any good news, markets are likely to reverse and may shoot up by short covering.
14. Smart shorts will cover only when things look very bad.
15. US, European futures are higher.
16. Reliance fell about 200 points in last few days but took support at lower levels.
17. Bajaj group stocks will be in focus as Bajaj Finance, Bajaj Auto, Bajaj FinServe will declare results this week.
18. Watch HDFC Bank, Kotak Bank, ICICI Bank for any reversal in Bank Nifty.
19. I am not expecting Bank Nifty to fall significantly from here.
20. So took some long positions, sold 19000CE, bought 18500PE and sold 2X18000PE.
21. My problem will be only when Bank Nifty falls below 18000.
22. All option positions taken in weekly options.
23. Right now there is no leadership.
24. Let us see whether Reliance provides leadership.
25. Nifty future may trade between 9020 and 9220.