Pre Market Report, May 20, 2020 | Stocks and Commodities

May 20, 2020
Time: 8 am

Pre Market Report:

1. Yesterday Nifty opened with huge gap up but was sold into within few seconds.
2. Bank Nifty opened about 500 points higher, then within few minutes fell 500 points again shot up 500 points and again fell 500 points.
3. Markets were so volatile, not only yesterday, the entire May series.
4. Yesterday US markets were flat until last one hour.
5. Just like Gilead, doubts were raised about Moderna.
6. In the last one hour markets fell.
7. But Asian markets are not reacting to US.
8. In fact even US futures are higher.
9. SGX Nifty is trading slightly above 8900.
10. Banking stocks are coming under huge selling pressure.
11. Yesterday Reliance also fell.
12. FMCG and Autos helped the markets.
13. PSU Banks are the worst performers.
14. Will not be surprised if PNB and BoB become single digit stocks.
15. Bajaj Finance came out with results after market hours.
16. Results seems to be not bad.
17. Since the stock is trading near 52 week low, there may be some short covering.
18. Today Bajaj Auto and DrReddy will declare results.
19. For tomorrow expiry Nifty 8500PE has the highest OI followed by 8800.
20. If everything goes well, we can expect Nifty to expire above 8800 tomorrow.
21. Among Call options, 9000CE has the highest OI.
22. So for today and tomorrow, the range seems to be 8700-9100 (Taking the total premium of more than 100 in 8800PE and 9000CE)
23. FIIs have sold Rs 1328 crores in Cash market.
24. But there are some positives.
25. One, DIIs have bought for Rs 1660 Crores which is more than what FIIs have sold.
26. Second, FIIs long positions in Index Futures increased from 28% to 47%.
27. Third, though FIIs sold, their selling figure was less than Rs 2000 crores after selling for more than Rs 2000 crores in the previous two sessions.
28. Moreover Global cures are not bad.
29. So at some point FII selling may reduce.
30. Since the middle of April, Nifty 8800 has been the support.
31. So I will become a bear positionally if Nifty breaks 8800.
32. For tomorrow expiry, I sold 9100CE and 8700PE.
33. Hoping both will expire worthless.
34. Markets are likely to be more volatile.
35. Nifty future may trade between 8800 and 9040.