Pre Market Report, June 2, 2020 | Stocks and Commodities

June 2, 2020
Time: 8 am

Pre Market Report:

1. US markets closed higher.
2. But US futures are down after Trump's announcement that he will deploy forces if states fail to control the protesters.
3. But Asian markets are ignoring US futures and trading higher.
4. SGX Nifty is higher by about 40 points.
5. Yesterday our markets shot up and out performed the world markets.
6. Bank Nifty shot up almost 20% in 3 days.
7. Nifty about 10% in 3 days.
8. Now Nifty is around the resistance zone of 9900-10000.
9. Very rarely India VIX move higher in a rising market.
10. Earlier Nifty tested 10000 twice, so it is a double top.
11. Nifty should face resistance around that figure.
12. If crossed, there will be another 5 to 6% rally can be expected.
13. FIIs have bought for more than 1000 crores in Cash market for third straight day.
14. Yesterday they have bought for Rs 1575 crores and DIIs have sold for Rs 459 crores.
15. US-China tension, US protests, India lock down extended, poor PMI data, poor auto sales data, despite all these markets are rallying.
16. Nifty is still trading at 40, 50 points discount and Bank Nifty more than 100 points discount.
17. Usually, when markets see such sharp rallies, that too near the resistance zones, markets will consolidate for few days before resuming the rally or fall.
18. Last month trading range was 9000-9500 but few times broke the lower end and extended lower range by another 200 points.
19. We can expect the opposite this month.
20. We can expect trading range as 9500-10000.
21. But the upside may be broken and upper range can be extended by 200 points, to 10200.
22. Moody's rating downgrade will become a non event.
23. I am expecting Nifty to consolidate between 9700 and 10000 for few days.
24. But markets can be highly volatile in this range.
25. Nifty future may trade between 9700 and 9950.