Pre Market Report, June 07, 2020 | Stocks and Commodities

June 07, 2020
Time: 8 am

Pre Market Report:

1. US markets closed mixed.
2. Nasdaq hit all time high and then met with some profit booking.
3. Yesterday we had two problems for banks.
4. There was a case in Supreme Court asking for interest waiver for businesses.
5. After this news all banks fell.
6. Bank Nifty lost nearly 1300 points from day before yesterday high to yesterday low.
7. That is almost one third of what was gained in last 10 days.
8. Second, Bank Nifty Option prices were not updated and that created havoc in options market.
9. Scred tp put market price as in one second price is Rs 30, next second it is Rs 50.
10. There were huge losses for many. Most brokers disabled market order.
11. Reliance and ITC supported the markets.
12. Reliance alone contributed 30 points to Nifty and that is why Nifty closed above 10000.
13. Otherwise Nifty would have closed below 10000.
14. Most of the time we follow Global markets, particularly US markets, now Nasdaq is already at all time high.
15. There are no positive news flow here.
16. So at best Nifty can go up to 10400 in this series.
17. For sometime Nifty can trade between 9800 and 10200.
18. Breaking of either level will decide the direction.
19. Bank Nifty fell more than 1200 points contributing about 400 point fall in nifty.
20. Otherwise Nifty would have crossed 10400 by this time.
21. Nifty will face resistance around 10400 due to 100DMA.
22. FIIs continue to buy in Cash market and DIIs continue to sell.
23. Yesterday I mentioned that since they are taking opposite views, markets may be volatile but on close to close basis, markets may not make a big move.
24. So it is time to consolidate.
25. Nifty may trade between 9940 and 10120.