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

July 2, 2020

Time: 8 am

Pre Market Report:

1. US markets ended mixed.
2. US added about 2.4 million jobs as per ADP data.
3. Today evening, official Employment data will come.
4. If it is coming around 3 million, it will be very positive.
5. Vaccine hope is also increasing.
6. Asian markets are generally positive.
7. SGX Nifty is up by more than 50 points.
8. Yesterday it was a surprising up move.
9. World markets were not positive.
10. In fact all European markets were trading in negative and US future were also negative.
11. But short covering propelled our markets higher.
12. Nifty, the day before yesterday, was trading 70, 80 points discount.
13. Bank Nifty was trading at 150 points discount.
14. The main reason, I think, is PM Speech.
15. Markets thought he would announce some measures against China.
16. PM Speech has become non event, neither he spoke about China nor additional stimulus.
17. So shorts started covering, that is why we moved against the Global cues.
18. Banking stocks led the rally.
19. FIIs continue to sell in Cash market, they have sold about Rs 1700 crores worth of shares.
20. Surprisingly DIIs continue to buy at this higher level.
21. Auto sales data were not encouraging.
22. Auto stocks already run up.
23. Earlier I sold 10600CE and 10000PE, yesterday I sold 10200PE, hoping that Nifty will expire between 10200 and 10600.
24. Positional traders, it is time to be cautious, we are the the top end of trading range, 9500-10550.
25. Nifty is likely to face resistance between 10500-10600 levels, Bank Nifty 22500-22600 levels.
26. Tomorrow, once again markets are likely to react violently based on US Jobs Data.
27. IIP data came at 47, which is not bad.
28. Overall, market sentiment is bullish now, enjoy the ride.
29. Expect volatile expiry today as markets moved significantly and markets opening with good gap up.
30. Nifty may expire between 10320 and 10520.