Pre Market Report, April 22, 2020 | Stocks and Commodities

April 22, 2020
Time: 8 am

Pre Market Report:

1. US markets closed more than 2% lower.
2. March month was for stock markets crash.
3. April month is for Crude oil crash.
4. Yesterday WTI Crude fell 50% at one point.
5. Later recovered some losses.
6. Brent Crude is now below $19.
7. WTI Crude went close to $7.
8. Asian markets are all down.
9. SGX Nifty is around 8900.
10. Yesterday Reliance shot up 80 points from low.
11. Now we know the news that Facebook investing Rs 44,000 Crore to pick about 10% stake in Reliance Jio.
12. Reliance move of 80 points is about 8% and that too in such a bad market sentiment.
13. FIIs have sold for Rs 2095 crores in Cash market and DIIs have sold for Rs 68 crores.
14. Two times, markets reversed significantly from 38.2% Fibonacci retracement.
15. This time Crude has made stock markets slippery.
16. So we may continue to consolidate in a wider range of 8800 and 9350.
17. Bank Nifty fell 1800 points from day before yesterday high to yesterday low.
18. Bajaj Finance hit fresh 52 week low, briefly traded at 10% lower circuit.
19. IT stocks did not react much for Trump's Tweet.
20. There is huge addition of Open Interest at Nifty 9100CE.
21. So for tomorrow's expiry, 9100 will be huge resistance.
22. There was unwinding in 9000PE. That shows that the support is broken and downside may be more.
23. Bank Nifty is looking very weak.
24. Despite good results, HDFC Bank has not moved for the the whole month.
25. Yesterday due to Crude panic, India VIX was up.
26. Let us see whether that continues to move higher or not.
27. There has been no bad news on Corona front and therefore when this Crude related panic settles, markets may stabilise and may move higher.
28. FIIs are creating more short positions in F&O.
29. That is always good, whenever there is a good news, short covering will help the markets to rally.
30. Nifty future may trade between 8800 and 9100.