Pre Market Report, April 21, 2020 | Stocks and Commodities

April 21, 2020
Time: 8 am

Pre Market Report:

1. US markets are following the pattern of "One day up, one day down" perfectly.
2. China Central Bank cut rates, Corona Virus infection is coming down, when things going very well, this Crude shock has come from nowhere.
3. Dow fell more than 500 points.
4. Asian markets are mostly negative.
5. SGX Nifty is down by about 100 points.
6. Yesterday WTI Crude started falling and fell to minus 37 dollars.
7. Nobody can really understand what is this minus 37 dollars?
8. That mean, if you buy one barrel of Crude oil, you do not have to pay anything, they will pay you $37.
9. But only condition is that you have to take physical delivery.
10. ICICI Bank was the strong performer, it shot up from 270 to 378 in last one month.
11. A rumour came that ICICI Bank has exposure to an Oil trading firm, ICICI fell 5%.
12. At the end of the day both FIIs and DIIs were net sellers.
13. But good thing is that FIIs selling Cash market has come down.
14. Markets are likely to consolidate with negative bias due to Crude shock.
15. Infosys came with results which is in line with street expectation.
16. It is likely to trade plus or minus 2 to 3%.
17. Yesterday despite HDFC Bank doing very well, Bank Nifty was not doing well.
18. Markets were highly volatile.
19. Bank Nifty shot up 350 points between 2 pm and 2.30 pm and fell 500 points from 2.30 pm and 3 pm.
20. Three attempts were made to cross 9350 but failed.
21. We need some positive trigger to break out.
22. So markets may consolidate between 9000 and 9350 for next one or two days.
23. Do not short, as Crude oil is a temp problem but Corona Virus is the bi problem.
24. That problem is being contained, as long as there are good news from that front, markets may not fall significantly.
25. There was a news report that said, SIPs are being stopped.
26. That was the main reason for hue volatility in our markets, Crude news came only in the afternoon.
27. I have done a strategy in Infosys, which I posted in YouTube.
28. Other than that there was a no major trades yesterday.
29. Took some long positions in Bank Nifty after it has fallen 400 points but sold Call options.
30. As long as Bank Nifty not falling too much, I will make some money.
31. Nifty future low on 17th was 9105. Nifty should not trade below that. But SGX Nifty is trading below that.
32. So it is time to be cautious on long positions.
33. Infosys will be in focus and ICICI Bank also.
34. Nifty future may trade between 9000 and 9300.
35. Trump Tweet banning Immigration is having negative effect in the world markets.
36. Dow futures fell more than 250 points suddenly.