Pre Market Report, June 4, 2020 | Stocks and Commodities

June 4, 2020
Time: 8 am

Pre Market Report:

1. US markets closed higher.
2. World markets are generally positive and rallying as Economies opening up.
3. Here we are have seen one of the sharpest short covering rally.
4. Bank Nifty shot up from 17100 to 21600 in a matter of less than 10 trading sessions.
5. A small selling by DIIs, Bank Nifty fell about 900 points intraday.
6. That is the problem when markets shoot up like this.
7. Rise or fall, if it is gradual, then it is good.
8. SGX Nifty crossed yesterday's high last night but now below 10100.
9. FIIs continue to buy and they have bought for Rs 1851 crores.
10. Intraday fall was due to DII selling of Rs 781 crores.
11. Earlier I said, last few weeks, Nifty 9000PE had the highest OI and broken every time to move 200 points lower.
12. Now Nifty 10000CE had the highest OI and that was broken and 10200 was tested yesterday.
13. Then started correcting. So 10200 should be a resistance.
14. Nifty is likely to close below 10200 today.
15. In case it 10200 is broken, then next target is 10400 which is 100DMA.
16. Since FIIs continue to buy in cash market, Nifty may not fall significantly.
17. Now Nifty range may be 9500 to 10400 for rest of the series.
18. We are likely to consolidate between 10000 and 10200 for next one or two days.
19. Expiry day volatility will be there and that too on the back of very strong rally in Global markets.
20. While writing the blog, Asian markets are coming off their highs.
21. Earlier I bought 9800CE and sold 2X10000CE. Will make some profit as long as Nifty does not close above 10200.
22. Huge selling came in Banking stocks and broader markets did not fall much in yesterday's intraday fall.
23. Expect a volatile session today as FIIs and DIIs taking opposite views.
24. For last few days they were on the same side.
25. Nifty future may trade between 9980 and 10200.