Pre Market Report, July 28, 2020 | Stocks and Commodities

July 28, 2020

Time: 8 am

Pre Market Report:

1. Register at www.workshop.prsundar.com, if you interested.
2. US markets closed higher after two days of losses.
3. Asian markets are higher.
4. SGX Nifty is trading around 11180.
5. If Nifty future opens around 11180, then i will be a decent gap up, considering the bearishness.
6. Yesterday I missed out the HDFC Bank news.
7. Aditya Puri selling shares worth more than 800 Crores dented the sentiment in HDFC Bank.
8. People who are retiring may need some money to do some other things, but Rs 800 crore plus is too much.
9. So people interpret this as his 'No Confidence' in HDFC Bank.
10. ICICI Bank fell 6% after the results.
11. Kotak Bank also fell more than Rs 60 from intraday high.
12. But Reliance and IT stocks supported the market.
13. Reliance hit fresh all time high and IT stocks are very close.
14. ITC did not move higher as it has already moved before results.
15. My strategies in both ITC and ICICI Bank did well.
16. ITC gave good profits and IICICI Bank very little profit.
17. Both FIIs and DIIs were net sellers in Cash market.
18. FIIs have sold Rs 453 crores while DIIs have sold for Rs 977 crores.
19. After market close, TechM came with good results.
20. So IT stocks may continue to do well.
21. Today Bank Nifty will be in focus.
22. Some bad news came for all top 3 banks, shares fell, price has already factored in.
23. So will there be any follow through selling or will there be some short covering as it seems to be over sold, relative to broader market.
24. Even if Bank Nifty recovers half of its yesterday's loss of over 800 points, Nifty can easily cross 11200.
25. But will that happen? That is a million dollar question.
26. For the last three days, Nifty is finding resistance above 11200 and finding support below 11100.
27. Nifty future making big swings everyday within this small range of 11050 and 11250.
28. Usually when this happens, markets will make a big move, either side, when the range is broken.
29. The question is will it break on the higher side due to IT and Reliance or will it break on the downside due to Banking stocks.
30. So in the next two weeks, we can expect either 10800 or 11500.
31. Mu feeling is that it will break on the higher side.
32. Let us see what happens.
33. Today there are 4 banks declaring results, RBL, YES, IndusInd, IDFC.
34. Since both FIIs and DIis were net sellers, we can expect some selling if Nifty opens gap up.
35. If that selling is arrested and moves higher to cross the morning high, that will be the sign of strength.
36. I will stay bullish as long as Nifty future does not fall below 11100.
37. There are only 3 days to expiry, Nifty future is still trading at discount.
38. That discount may disappear today or tomorrow.
39. That alone will contribute 15 to 20 points for Nifty future.
40. Nifty future may trade between 11100 and 11250.