Pre Market Report, May 21, 2020 | Stocks and Commodities

May 21, 2020
Time: 8 am

Pre Market Report:

1. US markets closed in Green.
2. But European and US futures are down right now.
3. Asian markets are in Green but off their highs. Some markets are turning negative.
4. SGX Nifty is down by about 40, 50 points.
5. Yesterday finally short covering rally came.
6. Day before yesterday FIIs covered their shorts and hence their long was shot up from 27% to 48%.
7. By taking the clue, retails also started covering their shorts.
8. But still FIIs have sold for Rs 1467 crores.
9. That is really a bad number considering the fact that they have been selling continuously for last one week.
10. In last few days alone, FIIs have sold for more than US$1 billion.
11. But DIIs bought for Rs 2373 crores which is much higher than what FIIs have sold.
12. That was another reason for market recovery.
13. After breaking down last Monday due to disappointment of 20 lakh crore package, Nifty future tried to come back above 9000 but could not close above 9000.
14. Yesterday for the first time, Nifty future closed above 9000.
15. Whether it will sustain above 9000 today or not is a million dollar question.
16. FM announced that there is no more stimulus in the form of direct or indirect taxes.
17. That could be one reason why SGX Nifty is down more than its Asian peers.
18. While US markets recovered most of their losses, we are struggling at lower levels.
19. May series has been one of the violent series, everyday Nifty makes more than 200 points move and Bank Nifty more than 600, 700 points.
20. But one good thing is that India VIX fell by more than 9%.
21. This is a significant fall in VIX after a long time.
22. I did mention that Nifty trading range is 8800-10000 for May series.
23. It tested the low but did not break the low.
24. In fact Nifty 8800 was the support from middle of April.
25. Reliance is also struggling around 1400, in fact, yesterday it broke 1400 briefly.
26. Bajaj Finance was up along the expected lines.
27. Auto stocks may be in focus after good results from Bajaj Auto.
28. Nifty future may trade between 8980 and 9120.
29. Markets are likely to be highly volatile due to weekly expiry.
30. Be ready for another roller coaster ride.