Pre Market Report, May 15, 2020 | Stocks and Commodities

May 15, 2020
Time: 8 am

Pre Market Report:

1. Entire May series so far has been highly volatile.
2. Except one day, all days in May, Nifty moved more than 200 points.
3. Bank Nifty has made more than 600 to 700 points move on almost all days.
4. On Tuesday night SGX Nifty was 9700, just two days, yesterday night it was 8900.
5. The volatility is so huge, traders are chopped off both sides.
6. Yesterday, in the first half, Dow fell about 400 points and then shot up about 800 points from the low.
7. So Asian markets are marginally positive.
8. SGX Nifty is trading almost flat with positive bias.
9. FIIs have pressed the sell button once again, sold for Rs 2152 Crores in Cash market.
10. DIIs bought for Rs 802 crores.
11. This shows very clearly that 20 lakh crore Economic package is not viewed positively by FIIs.
12. Despite such big moves in markets, India VIX keeps going dow.
13. That is very surprising.
14. OTM Puts hardly moved despite big fall in Nifty.
15. Heavy weight Banking Stocks like HDFC Bank, ICICI Bank, Kotak Bank are not doing well.
16. In fact they all fell more than 10% in this series.
17. Yesterday IT stocks fell, Infosys fell more than 5%.
18. Now there is no leasdership by any stock or sector.
19. Pharma sector is doing well but their weightage in Nifty is very little.
20. As long as Nifty is trading between 9000 and 9500, I will consider it as consolidation.
21. I will review only if Nifty closed beyond this range for further action.
22. Earlier I have given 8800 - 10000 as the monthly range for Nifty.
23. Long term view will change only when this range is breached.
24. If markets fall with rise in India VIX, then that is the time to worry.
25. Yesterday Nifty fell to a low of 9110, so next support is series low of 9037.
26. So today Nifty future may trade between 9040 and 9280.