Pre Market Report, May 22, 2020 | Stocks and Commodities

May 22, 2020
Time: 8 am

Pre Market Report:

1. US markets closed in Red.
2. Asian markets are also down marginally.
3. Hong Kong market is down by more than 3%. Worst performer in Asia.
4. SGX Nifty is down by 40, 50 points.
5. Yesterday we opened and traded strongly most of the day, much better than SGX Nifty indication.
6. But in the last hour, Banking stocks fell and dragged the Nifty.
7. In fact Bank Nifty closed in Red.
8. Surprisingly yesterday Pvt Sector Bank index was down while PSU Bank index was up.
9. ITS and Reliance saved market from collapsing.
10. Reliance JIO is attracting one more investment from KKR for more than 11000 crores.
11. RBI Governor addressing the Press at 10 am.
12. FIIs have sold only for Rs 258 crores in Cash market, after selling for more than Rs 1000 crore everyday for last many days.
13. These are positive local cues.
14. We have under performed the world markets due to disappointment of 20 lakh crore package.
15. Who knows, that may get adjusted in the next week.
16. May series has been highly volatile.
17. Usually high volatile series, markets will make a bigger move in the last week.
18. Monday is a trading holiday.
19. So there are only 3 trading sessions.
20. So far, Nifty has been trading between 8800 and 9500 in May series.
21. I will not be surprised if this range is broken by the end of this series, on either side.
22. Highest OI among Puts is at 9000PE.
23. Highest OI among Calls is at 10000CE followed by 9500CE.
24. But last week also we started like this but Nifty fell to 8800.
25. Auto stocks were up due to good results from Bajaj Auto.
26. But NBFCs fell.
27. We need to see how Reliance news affects the share price, what RBI Governor is going to speak, that will decide the course of the day.
28. Both Nifty future and Bank Nifty future traded at significant discount to their spot prices.
29. Any short covering, Nifty can easily cross 9200, but we need a trigger for that.
30. Let us see whether that comes from RBI Governor.
31. Without Private Banks, Index can not move significantly higher.
32. Nifty future may trade between 9000 and 9200.