Pre Market Report, June 1, 2020 | Stocks and Commodities

June 1, 2020
Time: 8 am

Pre Market Report:

1. Yesterday in my "Dalal Street Week Ahead" video, I mentioned that I am taking bullish view.
2. Asian markets are positive.
3. Hong Kong shot up more than 3% due to short covering rally.
4. China Manufacturing PMI data came above 50, which is a positive surprise.
5. Remember above 50 PMI means Economy is expanding.
6. SGX Nifty shot up 180 points after China PMI data.
7. On Friday Nifty future traded almost 90 point discount.
8. That may get corrected today.
9. Generally people are still pessimistic.
10. People are shorting Auto stocks by thinking that Auto sales data will be bad.
11. But that fact is known for everyone.
12. Entire May month was in lock down, so Auto sales data is bound to be ZERO.
13. There is no surprise in that.
14. Most of the world markets recovered between 50% and 100% without even any drug for Corona.
15. If there is any news about Corona Drug and Vaccine, then most markets may even recover 100%.
16. Last few weeks, highest OI 9000PE was tested and broken, tested 8800.
17. Opposite may happen this time, highest OI at 1000CE, that may be tested and 10200 may be tested on the higher side.
18. FIIs and DIIs both were net buyers on Friday.
19. GDP data that came on Friday was much better than expected.
20. Monthly Auto sales data expected to be zero for all auto companies.
21. Manufacturing PMI data is also not expected to be good.
22. Now Nifty decisively crossed 9500, trading range may be shifted to 9500-10000 from 9000-9500.
23. But markets can continue to be volatile.
24. Monsoon hitting Kerala today is a positive news for rural consumption stocks.
25. Partial lifting of lock down, Good Monsoon forecast, Expanding Manufacturing PMI in China, all pointing to the fact that bottom for medium term has been made at 8800, for long term 7500 bottom has been made.
26. Now it will be buy on dip market, rather than sell on rally market.
27. Nifty future may trade between 9520 and 9720.