July 16, 2020
Time: 8 am
Pre Market Report:
- US markets closed higher.
- Dow up for 4 straight days.
- Corona Virus Vaccine hope and Bank results are the reasons.
- Goldman results were very good.
- Asian markets are mixed.
- SGX Nifty is up by about 30, 40 points.
- Infosys ADR shot up 12% in US.
- In fact, yesterday, the top 5 gainers, all from IT.
- WIPRO results did the magic.
- Infosys hit fresh all time high yesterday.
- Today it will hit another all time high.
- Nifty future closed here at 10640, now SGX Nifty is trading around 10670.
- It is a gain of just 30 points and that should come only by Infosys.
- Leaving that factor, SGX Nifty is flat only.
- India markets are hugely under performing.
- Yesterday (Point 14) I said Reliance will come under selling pressure, but I did not think it wll fall so much from intraday high.
- It fell almost 180 points from intraday high.
- It is a classical example of "Buy on rumour, sell on news"
- What is worrying is Banks under performance.
- After falling more than 1500 points, Banks are still looking bearish.
- On June 25 which was June expiry day, Nifty (July) future closed at 10245 but now it is 10645, about 400 points higher.
- But in the same period, Bank Nifty future fell from 21430 to 21410.
- That is the kind of under performance by Bank Nifty.
- But it started with huge bullishness, on June 26, I sold Bank Nifty 25000CE at Rs 170, now trading around Rs 20.
- On any good news, Bank Nifty may see short covering.
- Only then Nifty can take out 200 DMA.
- Until then 10880 will be the resistance.
- Today we have to see if there is any follow through selling happens in Reliance.
- We are hugely under performing world markets.
- One day we will catch, but do not know which is that one day.
- Nifty future should trade within yesterday's range of 10590 and 10820.
- Meanwhile China GDP data is out, it is better than expected figure, still markets are not showing any change.
Comments
Post a Comment