Pre Market Report:
YESTERDAY: DAY 1 - FPI SurCHARGE CANCELLATION :
1)
Yesterday's volatility in our market, not seen
in more than 10 years.
2)
Even during 2015 when China devalued its
currency, in 2016 double whammy of demonetisation cum Trump winning, in 2017
Brexit, in 2018 February Dow crash, our markets have shown only gap down then
recovery.
3)
But yesterday Bank Nifty Pre open 700 points up,
at open 600 points up, then fell 800 points then shot up 1200 points.
4)
That is a total swing of about 10% of the total
market cap.
5)
Nifty gap up 150 points, fell 250 points and
then shot up 350 points.
6)
Trendfollowing Traders were killed both sides.
7)
HDFC has been very volatile in the last few
weeks.
8)
Surprisingly Reliance fell. If not Nifty would
have moved even higher.
9)
But at the end of the day, FIIs have sold for
more than Rs 700 crores.
DAY 2: - TODAY:
10)
So there may not be any significant rally going
forward.
11)
But the news like "RBI transfering its
surplus to Govt, Rs 1.76 lakh crore" will aid further short covering.
12)
Nifty is likely to consolidate between 11000 and
11200.
13)
Due to such a big rise, Call option premiums
have shot up.
14)
Today there may be some gap up or there will be
some sharp upmove due to RBI news.
15)
Then at some point there will be some selling as
FIIs continue to sell.
16)
Overall market may be volatile but close to
close basis there may not be any significant move on either side.
17)
Usually after such a big rise, markets will
consolidate at least for 2 to 3 days.
18)
We do not know what Trump will do overnight.
19)
SGX Nifty is trading around 11100, 50 points
higher than yesterday's close.
20)
Thanks to RBI which is transferring Rs 1.76 lakh
crore that will help Govt to announce some kind of fiscal stimulus.
21)
But the trades are not going to be easy, expect
the volatility to continue.
22)
Since it is the expiry week, there will be Gamma
effect.
23)
You need Iron Nerves to trade in this market,
according to my friend Mr D Muthu Krishnan.
24)
So be ready for another day of roller coaster
ride.
25)
Nifty future may trade between 11000 ( Round
figure, psychological support) and 11180 (somewhere near 200DMA).
Comments
Post a Comment