Pre Market Report, July 29, 2020 | Stocks and Commodities

July 29, 2020

Time: 8.10 am

Pre Market Report:

1. US markets fell.
2. But in the last few weeks Asian markets were not following US markets strictly.
3. Particularly India is not following US.
4. Some Asian markets are in Green.
5. China has fixed its currency below 7 yaun per dollar.
6. That is the reason why China and Hong Kong are in Green..
7. SGX Nifty is trading higher than yesterday's high.
8. Yesterday nobody expected Nifty to cross 11300.
9. Fact is that Nifty is scaling new high without the support of Bank Nifty.
10. You may remember, two weeks before, I said Nifty has the potential to reach 11300.
11. Yesterday I mentioned that Nifty will open gap up (that even a child knows as SGX Nifty was higher) and then there will be one selling, if that selling is arrested and reverses, to cross morning high, then the rally will be power full.
12. As expected Nifty fell 70 points from morning high, then shot up nearly 200 points.
13. Bank Nifty was hugely volatile, fell 560 points from morning high, then shot up 700 points.
14. FIIs were net buyers, just after selling only for one day.
15. They have bought for Rs 246 crores.
16. DIIs have sold for Rs 1017 crores.
17. ICICI Bank fell 10% in two days.
18. HDFC Bank recovered from lows.
19. KOtak Bank is the one that lifted the sentiment in Bank Nifty.
20. Kotak Bank fell more than 60 points from intraday high day before yesterday, but shot up more than 80 points from intraday low yesterday.
21. IT stocks and Reliance continue to support.
22. Yesterday Auto stocks joined the bull run.
23. Today Bharti Airtel and Maruti are two key companies set to declare results.
24. Since auto stocks were weak, short covering happened ahead of Maruti results.
25. Huge open interest added at 11000PE.
26. Huge unwinding of more than 19 lakh shares happened in 11200CE.
27. They seems to have been shifted to 11350CE.
28. There was unwinding even at 11500CE.
29. So option writers are too bullish.
30. July is one of the very few months in last one decade, where Nifty shot up more than 1000 points.
31. But one word of Caution, since May, every Wednesday has been hugely volatile.
32. So better to keep that in mind.
33. Nifty future may trade between 11220 and 11380.