Pre Market Report, August 28, 2019 - Wednesday



Pre Market Report:

YESTERDAY VIEW:

1)      US markets closed lower. But Asian markets are not following US.
2)      Yesterday I mentioned that after a huge rally, markets are likely to consolidate for next few days.
3)      RBI news lifted Bank Nifty, particularly PSU Banks. If not for this news, Nifty would have ended flat.
4)      Yesterday markets were volatile but range bound.

      TODAY: NO NEWS

5)      Most Asian markets are marginally higher.
6)      Right now it is buy on dip market.
7)      Nifty is likely to struggle between 11100 and 11200 due to 200DMA.
8)      Nifty 11200CE has huge OI and that is likely to be resistance until expiry.
9)      Nifty 11000PE added huge OI and that is likely to be support.
10)   Despite huge moves, Reliance has not been moving.
11)   That may limit upside for markets along with TCS and Infosys.
12)   This time Govt is playing very smart.
13)   They say they will announce two more measures in next two weeks, to keep short sellers at bay.
14)   FII selling is attributed to MSCI rebalancing.
15)   Once that is over people believe FIIs will turn buyers.
16)   Expecting that short covering is seen in FII related counters.
17)   HDFC shot up nearly Rs 150 in two days.
18)   HDFC Bank, ICICI Bank, Axis Bank all looking good.
19)   If everything goe well, markets may consolidate around 200DMA for few days and then may head towards 11400-11500.
20)   But that is assuming there is no further escalation of trade war.
21)   For September, will take view after seeing US and Indian GDP data in the next few days.
22)   I am taking bullish view and taking long positions on every dip.
23)   Nifty future may trade between 11060 and 11200.

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