Pre Market Report - August 23 2019 - Friday



Pre Market Report - Friday

1.       Yesterday (Thursday  Expiry ) was the worst day, market cap wiped out by more than 2 lakh crores.
2.       Thanks to CEA comment, "Profit is for private and loss is for public?"
3.       He conveniently forgot whenever there is profit in Crude oil, Govt takes the profit by increasing duty but whenever there is a loss, it is passed on to common man consumer.
4.       Power Minister and Railway Minister are talking but Finance Minister is busy travelling to small cities like Mysuru to understand the "Problems"
5.       The message from Govt is loud and clear, there will be no meaningful stimulus.
6.       Even if there is some small stimulus, it will be surely too late, too little.
7.       None of the strategies working except shorting on intraday recovery.
8.       Swing low was broken, breaking all technicals.
9.       Today morning all Asian markets are higher but SGX Nifty is in Red.
10.   People who are just selling Call options making good money.
11.   Today evening Fed chairman's comment will decide the direction of US markets next week.
12.   But going by the history, he is likely to disappoint the markets.
13.   Over the weekend, if there is no news about any stimulus, which is unlikely, our markets will come under more selling pressure next week.
14.   Due to significant fall in last one months, even a small selling will bring the market down as everyone is afraid of buying.
15.   Bank Nifty fell more than 700 points intraday, HDFC Bank and Kotak Bank which were holding the day before, came under severe selling pressure.
16.   Unless LIC enters the market and buy aggressively, market will not recover.
17.   However there may be some sharp upside move towards the end of the day as traders will like to square off their short trades ahead of week end holidays.
18.   In case, if there is any announcement by Govt or Fed, markets may open gap up on Monday.
19.   The reason, now 11000 will be the first strong resistance and 11200 which is above 200DMA will be the second strong resistance.
20.   If the markets continue to be weak, then just enjoy the profit.
21.   Markets may tarde sideways in the first half and likely to make a sharp move in the last one hour, hope it is not on the downside.
22.   It will be good if everyone keep quiet, in case if anybody speaks on behalf of Govt, then that sharp move can come on the downside.

Comments