Pre Market Report, July 21, 2020 | Stocks and Commodities

July 21, 2020

Time: 7.30 am

Pre Market Report:

1. US markets closed higher.
2. Nasdaq hit fresh all time high, up more than 2.5%.
3. Asian markets are higher.
4. SGX Nifty is trading above 11100.
5. HDFC Bank ADR up more than 8% and ICICI Bank ADR up more than 6%.
6. Yesterday, in the last one hour, IT stocks shot up.
7. But Bank Nifty came down a little.
8. HDFC bank came under profit booking in the last one hour.
9. The talk of the town is new SEBI circular which effectively bans intraday leverage over a period of time.
10. ICICI Direct will be affected Directly.
11. ICICI Direct is the one which provides more leverage.
12. So ICICI Direct should come under selling pressure.
13. That, logically, should affect ICICI Bank also.
14. But ICICI Bank ADR was up more than 6%.
15. So we have to wait and see what happens to both ICICI Bank and ICICI Direct.
16. Even in Cash market, brokers can not provide more than 4, 5 times leverage.
17. So that may reduce the intraday volatility in our markets.
18. Many top traded shares have only 10 to 20% delivery volume, rest all intraday play.
19. FIIs have bought for Rs 1710 crores in Cash market.
20. DIIs ahve sold for Rs Rs 1520 crores in Cash market.
21. Reliance is consolidating.
22. Bajaj Finance was up ahead of its results today.
23. When everyone is bearish, Corona lock down, Economy not running, Corporate results will be bad, etc, markets have already shot up from 7500 to 11000.
24. This is more than 50% rally from the base of 7500.
25. May expiry was around 9500, in June and July, Nifty shot up from 9500 to 11000.
26. I said Nifty has the potential to reach 11200, if 10850 is broken.
27. Even today itself, SGX Nifty is showing 11115. Just 85 points to the target 11200.
28. We still have another 8 trading sessions in July.
29. Banking and Broking stocks will be in focus today.
30. Nifty future may trade between 11000 and 11180.