Pre Market Report, July 30, 2020 | Stocks and Commodities

July 30, 2020

Time: 8 am

Pre Market Report:

1. US markets closed higher.
2. As expected Fed meeting has become a non event.
3. In fact, we have not even discussed anything about Fed event in last few days.
4. Asian markets are higher.
5. SGX Nifty is higher slightly.
6. Yesterday, markets fell from intra month high of 11350.
7. The fall was lead by Reliance and HDFC Bank.
8. Reliance fell 5% from intraday high to intraday low.
9. That is a normal profit booking ahead of results.
10. Anyway the prices did not go up because of results, so it may not come down significantly, even if results are not good.
11. Depending upon where Reliance closes, I am planning to do "Short Straddle" at 2100 or 2200.
12. Today Reliance and HDFC will declare results.
13. Reliance results will be after market hours.
14. HDFC may declare results during market hours.
15. Premiums are very high for Reliance, so it make sense to take short straddle or iron fly or iron condore, just ahead of results.
16. Both FIIs and DIIs were net sellers in Cash market yesterday.
17. FIIs have sold for Rs 353 crores.
18. DIIs have sold for Rs 506 crores.
19. Yesterday I observed that all PSU stocks were moving higher.
20. SBIN, REC, PFC (where I am holding positions) all moved significantly higher from morning lows.
21. Probably that is the reason why DII sell figure is less than Rs 1000 crore.
22. DIIs have been selling for more than Rs 1000 crore everyday for last few days, now they must be buying PSU stocks.
23. I mentioned that every Wednesday, markets will be hugely volatile.
24. Yesterday also, it has happened exactly.
25. Today, markets may not be that volatile.
26. Reliance, HDFC Bank, HDFC, ICICI Bank, Bharti Airtel are some of the keenly watched counters.
27. Among the Banks, Kotak Bank is the only stock that is buullish.
28. Bank Nifty can move higher only if HDFC Bank and ICIC Bank recovers.
29. With Top Two stocks bearish, we need to see whether Nifty can close around 11300.
30. Last expiry, Nifty closed at 10300, if it closes around 11300, then this July will be one of the few months where Nifty moved 1000 points higher.
31. But that may be difficult, unless there is some short covering in both Reliance and HDFC Bank.
32. Nifty may expire between 11180 and 11320.