Pre Market Report, August 12, 2020 | Stocks and Commodities

 August 12, 2020

Time: 8 am

Pre Market Report:

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2. US markets closed negative on profit booking.
3. Asian markets are generally down.
4. Japan is up as it was closed yesterday.
5. SGX Nifty is down more 100 points.
6. SGX Nifty seems to be over reacting.
7. Also SGX Nifty is worried about usual Wednesday volatility.
8. Since May, every Wednesday is a high volatile day.
9. June IIP data came at minus 16.6% and that is better than minus 33.9% in previous month.
10. Economy seems to be opening up slowly.
11. Nifty has been moving up and down with 11200 as Mean.
12. Any fall below 11200 is a buying opportunity.
13. Even yesterday, buying came at lower levels in Reliance.
14. Reliance has been trading between 2100 and 2200, yesterday it reversed from 2100 levels.
15. Both ICICI Bank and HDFC ADRs are up.
16. Nifty future shot up from 10880 to 11380 in 6 trading sessions.
17. So some profit booking is expected.
18. Bank Nifty future shot up more than 1200 points in last 6 trading sessions.
19. Today's fall may be just due to profit booking without any corresponding negative news flow.
20. FIIs are net buyers for Rs 1014 crores and DIIs are net sellers for Rs 1416 crores.
21. We are likely to consolidate around 11200 plus or minus 100, 150 points until Friday.
22. Remember we started this month around 11200.
23. For nearly two weeks, we have been consolidating.
24. This consolidation at higher levels is expected as Nifty shot up 1700 points in last two months.
25. Today's fall may be a knee jerk reaction to Gold price fall and Dollar index.
26. I am looking to sell Put option if Nifty continue to trade below 11250.
27. Be ready for roller coaster ride.
28. Nifty future may trade between 11200 and 11350.