Pre Market Report, August 06, 2020 | Stocks and Commodities

August 06, 2020

Time: 8 am

Pre Market Report:

1. US markets closed higher.
2. Asian markets are mixed.
3. SGX Nifty is flat.
4. Yesterday, our markets were highly volatile.
5. Every Wednesday is a high volatile day.
6. Nifty fell more than 130 points and Bank Nifty more than 500 points from intraday high to low.
7. Reliance and HDFC Bank were very volatile.
8. Reliance came under huge selling pressure after hitting fresh all time high.
9. Reliance and HDFC Bank alone is more than 25% of the Nifty index.
10. SBI promised short sellers not to cross Rs 200.
11. So heavy selling comes whenever SBI inches towards Rs 200.
12. Yesterday also, same has happened.
13. Canara Bank results are good.
14. Generally PSU Banks declaring good results.
15. Lupin, IDEA, Hind Petro, Pidilite, Adani Ent are some of the key companies set to declare results today.
16. HDFC will be in focus ahead of its fund raising program.
17. But most important is RBI policy at 11.45 am.
18. Two things, one will RBI cut rates.
19. Chances are very little as interest rates are very low and inflation is high.
20. At the same time, inflation is high, just due to Corona related supply issues.
21. That can be ignored for the time being.
22. If not Repo cut, RBI may tinker with SLR, CRR, Reverse Repo, etc for sentimental reasons.
23. Second, will Moratorium extended up to December?
24. Most bankers requested not to extend Moratorium.
25. Will RBI allow one time Restructuring or Resheduling?
26. Or will RBI go for Operation Twist?
27. So Bank Nifty is bound to be highly volatile today.
28. Both FIIs and DIIs were net sellers yesterday, FIIs for Rs 60 crores and DIIs for Rs 426 crores.
29. My Gut feeling is that Bank Nifty will move higher after RBI policy.
30. Nifty may trade in a wide range of 11020 and 11280 due to RBI policy.