Pre Market Report, May 28, 2020 | Stocks and Commodities

May 28, 2020
Time: 8 am

Pre Market Report:

1. US markets closed higher.
2. Asian markets are also higher.
3. SGX Nifty traded below 9200 yesterday but now trading around 9365.
4. As usual volatility continues.
5. Last Sunday, in my YouTube Video, "Dalal Street Week Ahead", I mentioned that Bank Nifty seems to be hugely over sold.
6. I also said that usually volatile months see huge move in the last few days.
7. That move has come yesterday, Bank Nifty shot up more than 1200 points and Nifty shot up more than 350 points from intraday low.
8. Axis Bank shot up 15% and Kotak Bank went up despite company declaring QIP at 5% discount for its QIP.
9. Many Call option sellers had to face huge losses.
10. I also made some losses, which I will update in YouTube video tomorrow.
11. Yesterday when Nifty future broke 9000, I became bearish and sold 9200CE.
12. The short covering rally came as DIIs bought for Rs 2408 crores.
13. However FIIs were net sellers for Rs 334 crores.
14. Few days before I mentioned in my blog that I will not be surprised if Nifty expires above 9340.
15. Yesterday Nifty future hit a high of 9341.
16. In fact on April 29, Nifty was around 9400, the news came Gilead drug for Corona virus, Nifty shot up to 9900 on April 30, the next trading day, Nifty fell back to 9400 as that news was not authentic.
17. Entire May series, markets traded with huge volatility but now seems to close flat.
18. I mentioned earlier, March - Crash, April - Retracement, May - Consolidation.
19. That has happened exactly.
20. Today markets may open gap up.
21. But at some point I am expecting some selling.
22. Nifty is not likely to close above 9400, but we do not know how much more short are left.
23. I will be happy if Nifty closes around 9300.
24. We have been under performing world markets for the last one month.
25. Short term, we may under perform or out perform, but in longer time frame, we will align with Global markets.
26. So going forward, we can expect some more upside.
27. Next resistance will be only at 10000.
28. Nifty my trade between 9280 and 9420.