Pre Market Report, June 10, 2020 | Stocks and Commodities

June 10, 2020
Time: 8.10 am

Pre Market Report:

1. Indian markets have been highly volatile for last two day.
2. Nifty moved more than 200 points and Bank Nifty more than 900 points.
3. There was huge profit booking by DIIs in both Reliance and HDFC Bank.
4. Very rarely HDFC Bank makes such an erratic move, from 1020 to 1000, then to 1020 and again to 980.
5. Usually markets make such big moves on Wednesday, the day before expiry, to wipe out Option writers on one side.
6. This time such erratic, big move happened both on Monday and Tuesday.
7. Things were going well until 12.30 pm.
8. When European markets opened, huge profit booking came and most of the European markets fell 2%.
9. Dow futures fell more than 300 points.
10. Then short sellers have become very active and our market started falling.
11. This kind of big, violent moves come as markets shot up too fast from 9000 to 10300.
12. Before this big move, Nifty 9900-1000 was the huge resistance.
13. So that should be the support area now.
14. When US markets opened, Nasdaq hit fresh all time high again.
15. Asian markets are ignoring overnight fall in Europe and US. (Dow and S&P 500)
16. SGX Nifty is up by about 80 points, means Bank Nifty will be up by 200 points.
17. I mentioned earlier that 10350 which is 100DMA will be the resistance and 9900, which was the resistance earlier, now support.
18. Markets are respecting those levels.
19. For monthly, I said 9500-10500.
20. So far in the past, we always faced Fed meet with Optimism.
21. There is no reason to face Fed this time with Pessimism.
22. Fed never do anything against markets, that too in Trump era.
23. FIIs were net buyers in Cash market, normally this kind of markets, FIIs sell and DIIs buy but it was exactly opposite yesterday.
24. FIIs have taken bullish view in F&O also.
25. So yesterday's fall could be an aberration.
26. Markets may open around 10100, there may be some minor dip.
27. In the afternoon, things may improve and Nifty is likely to close above 10100.
28. Nifty future may trade between 10020 and 10220.