Pre Market Report, May 6, 2020 | Stocks and Commodities

May 6, 2020
Time: 8.30 am

Pre Market Report:

1. US markets opened with ood optimism but closed off the highs.
2. Asian markets are generally higher marginally.
3. SGX Nifty tested 9180 but recovered now trading around 9200.
4. Crude prices shot up 25% and that is a good sign as people think Economies will improve and that will increase demand for oil.
5. Our markets are not following Global cues.
6. FIIs sold for 1059 crores in Cash market.
7. DIIs also sold for Rs 995 crores, which is almost close to Rs 1000 crores.
8. So for last two days, both FII and DIIs sold for more than 1000 crores.
9. Bank Nifty fell almost 3000 points from Thursday high to Tuesday low, which is around 12 hours of trading.
10. Bank Nifty is under performing hugely.
11. Even yesterday from intraday high, Bank Nifty fell about 900 points.
12. The main reason: Banks requested for another 3 months moratorium.
13. Ever since this news broke out, Banking stocks are falling.
14. Hue OI added in Nifty 9300, 9400, 9500CEs.
15. I sold all these Calls. (May be that is the reason!)
16. Major problem for our markets, (i) Absence of Fiscal Stimulus, (ii) Banks requesting for 3 more months of moratorium, (ii) Some state Govts increasing Petrol and Liquor prices.
17. Once increased by citing some reasons (like Corona), it will never be decreased.
18. Since Nifty fell 700 points and Bank Nifty 3000 points in such a short period, some technical bounce is expected.
19. That may create volatility today and tomorrow.
20. Markets may go for consolidation with negative bias for the rest of the series.
21. So it is time to be cautious.
22. Nifty future may trade between 9120 and 9320.