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.
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