Pre Market Report, May 27, 2020 | Stocks and Commodities

May 27, 2020
Time: 8 am

Pre Market Report:

1. US markets shot up but came under selling pressure in the last one hour.
2. In the last one hour, S&P 500 lost almost half of the gain.
3. That is due to a news report that said Trump is considering sanctions against China.
4. Asian markets are mixed.
5. SGX Nifty is almost flat with positive bias.
6. Yesterday was the best day for bulls to take the resistance of 9200 out.
7. But they failed miserably.
8. Nifty fell almost 200 points from intraday high.
9. Only good thing was that Bank Nifty out performed Nifty after a long time.
10. Particularly HDFC Bank did well and that supported Bank Nifty.
11. Bajaj Finance hit 52 week low again.
12. Reliance is also struggling around 1420, my entry level.
13. FIIs bought for Rs 4716 crores and DIIs bought for Rs 2841 crores.
14. That is little over Rs 7500 crores.
15. But there is nothing to feel good about it.
16. The entire 7500 crores would have gone to Bharti airtel.
17. Now it is the turn of Kotak Bank.
18. QIP launched at a maximum discount of 5%.
19. So Kotak will see knee jerk reaction on the downside, that will drag Bank Nifty also.
20. Indian markets are hugely under performing world markets.
21. Tale of Two Countries: One Country head always think about Stock Market while the head of other one never think about Stock Market.
22. Clearly Govt is struggling to find a balance between Economic damage and Corona damage.
23. There was unwinding in Nifty 9000PE and increase in OI in 8900PE and 8800PE.
24. This shows that writers are not confident of Nifty expiring above 9000.
25. At the same time, huge OI added at 9100CE and 9200CE.
26. So writers think Nifty will expire between 8900 and 9100.
27. Usually Wednesday trade will be highly volatile.
28. Nifty future may trade between 8960 and 9180.