Pre Market Report, May 13, 2020 | Stocks and Commodities

May 13, 2020
Time: 8 am

Pre Market Report:

1. Indian markets have been highly volatile in the last few sessions.
2. Bank Nifty fell about 1800 points from day before yesterday high to yesterday low.
3. Yesterday if fell about 1000 points from previous day close and then shot up about 800 points.
4. Both Bank Nifty future and Nifty future were trading in discount.
5. Yesterday afternoon news came that PM is addressing the Nation.
6. Then came the short covering, Bank Nifty shot up about 800 points and Nifty about 200 points.
7. PM announce Rs 20 lakh crore package, without giving details.
8. SGX Nifty shot up about 500 points just after this news.
9. Then US markets fell, now Asian markets are down.
10. So SGX Nifty cooled and now trading around 9400.
11. So once again Nifty is falling in the range 9000 - 9500.
12. Markets all over the world are down due to increased fear of Corona virus.
13. South Korea seeing second wave of infections.
14. That triggers fear among the countries that are planning to open the Economic activities.
15. Even after so many months, there seems to be no drug or vaccine.
16. While writing the blog, some Asian markets are turning positive.
17. IIP data came at minus 16.7, worst data.
18. CPI Inflation was also higher.
19. As I stated in my YouTube video, "Dalal Street Week Ahead" these data are immaterial as the entire month was in lock down.
20. Both FIIs and DIIs were net sellers in Cash market.
21. But again these data points are useful on the backdrop of 20 lakh crore Economic Package.
22. PM has just announced the quantum, no details. Details will be coming today.
23. So tomorrow's market reaction is going to be very important.
24. Nifty future may trade between 9300 and 9500.
25. Opening, there will be panic among short sellers, after that markets may stabilise.