1. U.S Markets closed higher on Friday.
2. Right now , dow futures are lower.
3. Asian markets are mixed.
4. SGX Nifty is up 30-50 Points.
5. There's no point discussing Global markets today.
6. As we are dealing with our own local issues as of now.
7. The talk of the town is Adani Group.
8. Every stock Market participant during last 2 days have not spent as much time with their wife /gf /husband /bf as they have spent on researching Adani stocks.
9. They shouldn't have wasted so much time in research and should've spent their time with loved ones.
10. As Ultimately my Pre Market report would clear all.
11. Now , the Adani stock price has gone below the FPO price.
12. FPO price is in the range of 3100-3200 and stock price is around 2800
13. Who will subscribe to FPO when they can buy shares much cheaper from the Market?
14. Also over the weekend Adani has come up with a 450 page report addressing one by one the allegations made by Hindenberg.
15. I haven't gone through it in detailed , and had an overview of it.
16. If Adani somehow manages to lock their shares in upper circuit today.
17. The sentiment around people would change.
18. Now the game is only about sentiment
19. As in the short run Market runs on sentiment.
20. If the shares ain't locked in upper circuit during first 30 minutes then there would again be a free fall.
21. Another problem which the group has is of pledged shares.
22. This group has taken loans from Bank and pledged their shares.
23. Say you pledge shares of 100rs , you get a loan of 80rs.
24. As long as shares are above 80rs bank doesn't react.
25. As it comes to 80 the Bank starts to sell shares in open market as they do not wish to risk their money.
26. So if shares keep falling today as well Banks will be afraid and that will trigger margin call.
27. I get a sense today that Adani shares could be locked in upper circuit.
28. There would be Management appearances over Media trying to gain trust of investors etc.
29. If it isn't locked in upper circuit today , then get ready for a major problem and collapse in markets.
30. Nifty might trade between 17400 to 17700 today.
31.stockmarketadvisory.in
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