Pre Market Report, April 3. 2020 | Stocks and Commodities

April 3. 2020
Time: 8.15 am

Pre Market Report:

1. US markets were up yesterday.
2. Most Asian markets are higher.
3. But SGX Nifty is slightly lower.
4. Taking the crude crash as opportunity, China decided to increase its strategic reserves.
5. Trump said he will talk to Saudi Arabia and Russia to bring down the production by at least 10 million barrels a day.
6. So Crude prices shot up by 25%.
7. On Wednesday, Nifty fell nearly 4%.
8. Both FIIs and DIIs were net sellers.
9. Despite that India VIX fell.
10. Going forward, India VIX is likely to fall further.
11. PM is giving a video message by 9 am.
12. Markets are keenly awaiting for that message.
13. The big question in everyone's mind was "Will the lock down be extended?"
14. The answer is simple, it will be ending in a phased manner.
15. Hot spots may continue be locked down.
16. Other areas may be opened up.
17. Industries may be given exemption from lock down with strict SOP (Standard Operating Procedures)
18. If you remove the Delhi gathering cases, India is still least affected.
19. Though Nifty fell 360 points on Wednesday, Nifty weekly 7500PE did not even go up by Rs 10.
20. Monday is a holiday.
21. So we have only 4 trading days for this weekly expiry.
22. Wednesday Kotak Bank was the main reason for Bank Nifty under performance.
23. Today Reliance will be in focus as Crude shot up 25%.
24. Markets are likely to consolidate in a wide range.
25. FIIs selling will see some exhaustion at some point of time.
26. Even now the selling is not big but there are no buyers even for small amounts.
27. But in case, if corona death increases in Europe and US, volatility may come back to markets.
28. So next two to three weeks will be very crucial.
29. Until then keep your positions light and hedged.
30. Nifty future low on Wednesday was 8180, as long as this one is not breached, we can expect some short covering.
31. Anyway there will be some sharp move on either side towards the end of the day.