Pre Market Report, July 15, 2020 | Stocks and Commodities

July 15, 2020

Time: 8 am

Pre Market Report:

1. You can register for the workshop at www.workshop.prsundar.com
2. US markets closed firmly in Green after a huge volatile session.
3. Nasdaq opened 100 points down, then within few minutes shot up 200 points and then again within few minutes, fell 300 points and then at closing went up 300 points.
4. But Dow did not move much due to better than expected corporate results from JP Morgan.
5. But Wall Mart reported bad results.
6. Right now US futures are higher due Corona Vaccine hope.
7. After Gilead, now Moderna claiming that its Corona Vaccine is doing well.
8. SGX Nifty is trading around 10700.
9. Day before yesterday night, SGX Nifty was at 10900, yesterday evening 10540, now 10700.
10. Yesterday I did not think our markets will fall so much.
11. I under estimated HDFC Bank news that two top level executives left the company.
12. It was mainly Banks, HDFC Bank, ICICI BAnk, Kotak Bank, Axis Bank, IndusInd Bank, SBI that dragged the markets.
13. Reliance is holding due to AGM today at 2 pm.
14. If market sentiment is bad, then Reliance is likely to fall after AGM.
15. But before that it may hit a fresh all time high.
16. IV is so high in Reliance, even 2180CE is trading at huge premium.
17. Bank Nifty has fallen nearly 1800 points from recent high.
18. FIIs have sold for more than Rs 1500 crores.
19. DIIs also have sold for about Rs 650 crores.
20. With this DIIs have sold for more than Rs 5000 crores in last one week.
21. The more they are selling, we can assume that markets will not fall significantly from here.
22. They are selling and raising Cash so that they can support if markets fall significantly.
23. That is why I am still holding my 10400PE and 10200PE despite having some MTM losses.
24. Banking Stocks (Over Sold), Reliance (AGM), Infosys (Results after Market hours) will be in focus today.
25. WIPRO results seems to be good, so expectation may increase for Infosys today.
26. I sold 830CE in Infosys, expecting Infosys not to go above 830.
27. It has already run up more than 10% ahead of results.
28. US-China Trade tension is increasing but markets are ignoring.
29. But China is down today.
30. Google seems to be planning to invest US$4 billion in Reliance JIO is another booster for Reliance.
31. Nifty future may trade between 10650 and 10780.
32. India VIX is likely to go down, Bank Nifty may out perform.
33. But after 2 pm, the HERO will be Reliance due to AGM.