Pre Market Report, May 19, 2020 | Stocks and Commodities

May 19, 2020
Time: 8 am

Pre Market Report:

1. Yesterday's fall in our markets is really puzzling.
2. Global cues were very strong.
3. There was no big negative news.
4. Yet blue chip stocks like HDFC Bank, ICICI Bank, Kotak Bank all fell 5 to 10%.
5. NBFCs were the worst hit, NBFC stocks fell by 5 to 20%.
6. What surprised me was the last hour selling breaking the low of the day.
7. That happened against the backdrop of huge rally in Europe and US futures.
8. Clearly yesterday's trend was a aberration.
9. Series low was broken as FII selling was more than Rs 4000 crores in the previous 2 days and FIIs were not happy with the details of Economic Package.
10. On expected line FIIs have sold for Rs 2512 crores in Cash market.
11. DIIs did not support the markets, even at lower levels, DIIs sold for rs 152 crores.
12. Moderna, a Bio Tech Company, said it is getting positive results for its Corona Virus Vaccine.
13. That lifted sentiment all over the world.
14. Now SGX Nifty is up by over 150 points, trading near 9000.
15. Even in April, last two weeks, Nifty broke 9000 and tested 8800 few times but quickly bounced back to 9000-9500 range.
16. Nifty took support around 8800, which I mentioned as good support for my monthly range.
17. I will start worrying for medium term only if Nifty breaks 8800.
18. Reliance is holding in such a big falling market.
19. Today we can expect Reliance to do well.
20. All are going well for Reliance, more investments coming, Crude is moving higher.
21. Bajaj Finance will be in focus ahead of its results today.
22. FIIs seems to have added huge shorts.
23. That will be good, there will be short covering rally, in near future.
24. It looks today itself they will be running for cover.
25. India VIX above 40 and S&P 500 VIX below 30.
26. That shows the extend of volatility and damage due to local factors. 
27. Markets are sometimes irrational.
28. Yesterday I felt and that is why I sold ICICI Bank 300PE and HDFC Bank 840PE.
29. Prepared to take delivery if they fall below these strike prices.
30. Yesterday my pre market prediction for Nifty range has gone terribly wrong.
31. Today we can expect Nifty future to trade between 8880 and 9080.