Pre Market Report, May 7, 2020 | Stocks and Commodities

May 7, 2020
Time: 8 am

Pre Market Report:

1. US markets ended mixed.
2. When our market closed, DOW futures was up by 150 points, but closed more than 200 points down.
3. SX Nifty hit a low of 9100 yesterday night.
4. Asian markets are generally down but marginally.
5. SGX Nifty is trading around 9150.
6. You may remember, last week expiry, Nifty opened gap up more than 500 points and all CE sellers were in trouble.
7. Today it may open gap down about 150 points, so PE sellers will be in trouble.
8. Yesterday India Services PMI came at 5.4, lowest in the World History.
9. After selling for more than Rs 1000 crores for last few sessions, FIIs sold only for Rs 494 crores.
10. DIIs bought for Rs 322 crores.
11. So by looking at this data, markets should find support at lower levels.
12. Nifty should take support at 9080.
13. Yesterday markets were highly volatile.
14. Both Nifty and Bank Nifty made huge moves both sides.
15. Markets all over the world may be nervous ahead of Jobless claim data today and monthly Payroll data tomorrow, from US.
16. ICICI Bank will be in focus ahead of its results on Saturday.
17. Maruti will be in focus as it announced that production will start from May 12.
18. In April, last two weeks Nifty was trading between 9000 and 9400, one time overshot on the down side to 8800 and one time overshot on the up side to 9900.
19. Now in May first week also, Nifty has been trading between 9000 and 9400.
20. But in this small range, it is moving very violently on both sides.
21. Markets all over the world caught between bad Economic data (lag indicator) and Optimism over opening up of Economies (lead indicator)
22. Until clarity emerges, volumes will be low and hence volatility will be very high.
23. Interesting to note that India VIX has been significantly higher than S&P 500 VIX for last many weeks.
24. YES Bank came out with bad results but it was expected.
25. Anyway people have written off YES Bank.
26. Today I am expecting violent moves between 9080 and 9320.
27. Bank Nifty is likely to be more volatile.
28. Request by Banks to extend 3 months moratorium for all loans is the reason for such a volatility in Banking stocks.
29. Bank Nifty fell 3000 points in 3 trading sessions.
30. Be prepared for high volatile, roller coaster ride today.