Pre Market Report, May 11, 2020 | Stocks and Commodities

May 11, 2020
Time: 8 am

Pre Market Report:

1. US markets closed higher on Friday.
2. Asian markets are higher today.
3. SGX Nifty is up by more than 120 points.
4. Over the weekend ICICI Bank came out with results.
5. The results were below market estimates.
6. That is due to 3X more provisions due to Corona.
7. So we have to see how this stock reacts for its results.
8. Global cues are good, in fact Nasdaq has turned positive for the year.
9. Banks are hugely under performing.
10. Coming Wednesday, Kotak Bank will declare results.
11. Since ICICI and Kotak are two index heavyweights in Bank Nifty, we need to see how Bank Nifty performs this week.
12. Even on Friday, Bank Nifty future fell more than 700 points from intraday high.
13. Reliance is the only stock that is unstoppable.
14. Good news keep coming, after Facebook, Silver Lake, Atlanta, now Saudi Sovereign Wealth Fund reportedly interested in taking a stake in JIO.
15. One key thing to remember is FII data.
16. FIIs were net buyers for Rs 1724 crores in Cash market. DIIs have sold for Rs 1503 crores.
17. This is the first significant buy as they kept selling since April 16. (Only two days they were buyers due to block deals)
18. So though markets came under severe selling pressure for last few days at higher levels, this time if Nifty future crosses 9420, the story will be different.
19. If Govt comes out with Economic Package (Rumours are floating around that it will be announce this week), then Nifty can breakout again and move towards 10000 again.
20. When markets fell on Friday afternoon due to profit booking, I took that opportunity to sell 9000, 8800, 8700PEs in weekly options.
21. If Nifty crosses 9420, I will start selling PEs in monthly options also. 
22. Expecting some short covering in Kotak Bank ahead of its results on Wednesday.
23. March 2020 - Bi crash, April 2020 - Big Retracement, May 2020 - Consolidation so far.
24. Volatility keeps falling.
25. That is a good sign of stability.
26. Nifty future may trade between 9280 and 9420.