Pre Market Report, May 14, 2020 | Stocks and Commodities

May 14, 2020
Time: 8.15 am

Pre Market Report:

1. US markets fell significantly for second day.
2. People expected Fed to go for negative rates.
3. Even Trump pushed for it.
4. But Fed Chairman Powell indicated that negative interest is not on the table, though he did not not rule out such a possibility in future.
5. Powell commented negative about about Economy.
6. Dow fell nearly 1000 points in 2 days.
7. Asian markets are also falling.
8. Markets do not seems to be happy with details of Economic package details by FM.
9. Earlier it was targeted at poor people.
10. Now it is targeted at MSME sectors.
11. There was nothing for big companies which are listed in stock market.
12. Housing Finance and NBFCs may benefit from this Economic package.
13. FIIs not impressed with the Economic Package even before the details were announced.
14. Yesterday they were net sellers in Cash market yesterday.
15. So clearly it is sell on news.
16. In fact, in May series, Nifty future closed between 9200 and 9300 in all trading sessions, except yesterday.
17. Rs 20 lakh crore package, Nifty could not even move 2% on closing basis.
18. Today once again it is back to 9200-9300 range.
19. Earlier I said, March, it was crash, April it was retracement, May it is consolidation.
20. Banks are looking very weak and they will continue to be weak.
21. Kotak Bank could not move even after good results.
22. OI analysis is of no use as people buy lottery one day before expiry.
23. Nifty 10000CE has the highest OI, added more than 4.9 lakh shares in OI, closed at Rs 8.
24. Even after 20 lakh crore package, Nifty moved only 200 points but how Nifty can move 600 points today?
25. Sometimes, there is no logic in premiums, today opening itself it will be below Rs 0.50. If it trades more than Rs 0.50, I will sell.
26. At least Reliance provided leadership is last few weeks, now that is also gone.
27. Stock market is facing leadership crisis (I am talking about stocks, I am not responsible if you think I am talking about FM)
28. As per some reports from WHO, this Corona is not going away anytime soon.
29. Will not be surprised if second wave of selling comes due to resurgent of corona virus.
30. World markets will have to recover in next few days, otherwise there is a danger of another breakdown. 
31. Let us hope for best.
32. Today Nifty future may trade between 9200 and 9400.
33. Expiry related issues will add to the volatility.