Pre Market Report, June 03, 2020 | Stocks and Commodities

June 03, 2020
Time: 8 am

Pre Market Report:

1. US markets closed higher.
2. Asian markets are higher.
3. SGX Nifty at 10080.
4. From 8800 to 10100, this is the fastest traded rally.
5. In 2009, Nifty shot up by 20% in one day, but it was gap up.
6. Bull markets climb the wall of worry.
7. Consensus is dangerous in Stock Market. Remember everyone was bearish at the beginning of June.
8. Bull market begins when every bull turns into a bear.
9. Markets can continue to be irrational until you go bankrupt. (Here short sellers who sold as nothing is good in reality)
10. These are some of the stock market quotes.
11. Bajaj Finance is up 20% in 2 days.
12. Nifty 10000 was the double top.
13. Now with this gap up, that is taken out.
14. Markets may not move in straight line, but the trend is up.
15. So now, it will be buy on dip market.
16. Shorts are still there, that is why Futures are trading at discount.
17. Markets will correct only when all those short sellers are thrown out.
18. FIIs have bought for Rs 7500 crores in Cash market.
19. Kotak Bank stake sale was about Rs 7000 crore, though I am not sure, entire stake would have been bought by FIIs, DIIs usually do not buy at high prices.
20. So if you take that into consideration, both FIIs and DIIs have bought for about Rs 500 crores in Cash market.
21. Nifty rallied for 5 days and today 6th day, gap up opening.
22. Earlier I mentioned that for last few weeks, Nifty 9000PE has the highest OI and Nifty broke that level took support at 8800.
23. Same way I said, this time, Nifty 10000CE has the highest OI and Nifty may break and resistance may come at 10200.
24. I expected Nifty to consolidate between 9700 and 10000 for few days before breaking out or down.
25. But so quickly, it is breaking out. At least until tomorrow expiry, Nifty may consolidate between 10000 and 10200.
26. Call writers are clearly in trouble. I am struggling with my positions.
27. Nifty may trade between 9900 and 10120.