Pre Market Report, June 12, 2020 | Stocks and Commodities

June 12, 2020
Time: 8.10 am

Pre Market Report:

1. US markets fell nearly 7%.
2. Second wave of Corona Virus, Fed cautious outlook for Economy, Nasdaq trading at all time high, all contributed to huge profit booking.
3. All stocks that shot up, airlines, cruise liners, all that benefit due to opening up of Economy, came under severe selling pressure.
4. In Feb 2018, Dow fell 5% during the market hours, when Asian markets opened next day morning, Dow Future fell another 5%.
5. Probably Institutional sell data was very bad that day.
6. But today, after falling 7% yesterday, Dow Futures is up nearly 300 points.
7. So that reduces damage in Asia.
8. SGX Nifty hit a low of 9400 yesterday night, now trading around 9600.
9. In fact we partially factored in in yesterday's trade.
10. We should not fall more than 2 to 3%.
11. DIIs may step in, in the afternoon to support the market. We can expect some recovery towards the end of the day.
12. Who knows? Govt may reduce GST rates in today's GST Council meet.
13. If anything like that happens and if US markets recover tonight, we see interesting Monday.
14. Markets have been highly volatile since May.
15. But Corona problem is getting worse in India, now India is fourth most affected country.
16. Yesterday both FIIs and DIIs have sold for more than Rs 800 crores each in Cash market.
17. Nifty 9900 was a good support but that was broken yesterday.
18. Next support is at 9500. With today's expected fall Nifty would have retraced 50% of the last rise from 9800 to 10350.
19. So logically that should be a good support.
20. Though there is an increase in Corona infections in US, US has no intention of closing the Economy.
21. I will not be surprised if Nifty closes above 9700 today. 
22. SGX Nifty seems to be over reacting. 
23. But markets will be under pressure in the morning, may be some margin Calls.
24. Now Nifty 10000 will be the resistance for the rest of the series.
25. So I am planning to sell CE above 10000.
26. SGX Nifty seems to be over reacting. 
27. Nifty future may trade between 9500 and 9800.