Pre Market Report, August 14, 2020 | Stocks and Commodities

 August 14, 2020

Time: 8.10 am

Pre Market Report:

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2. US markets ended mixed, as it has been doing for last one week.
3. One day Nasdaq up, Dow down and the other day Nasdaq down, Dow up.
4. Asian markets are mostly positive.
5. SGX Nifty opened lower, below 11300, now recovering and trading around 11330.
6. That is almost flat opening for our markets.
7. AGR Case, as per some channels, coming up after 3 pm.
8. So for today's trade, that may be a non event.
9. Monday, be prepared for big action.
10. After Motherson Sumi, Bharat Forge, Ashok Leyland shot up after a bad result.
11. Mid cap space is where lot of action is there.
12. Today we may the same action in Tata Steel.
13. In the absence of AGR news, our markets are likely to consolidate further.
14. Bank Nifty was weak yesterday.
15. As expected CPI inflation was higher at 6.93%.
16. But inflation is higher due to Covid related issues.
17. Yesterday also FIIs were net buyers for Rs 416 crores and DIIs were net sellers for Rs 764 crores.
18. Reliance has been struggling and a decisive move can be expected only after AGR verdict.
19. Same is the case with Banking stocks also.
20. Axis Bank (due to MSCI rebalancing) and ICICI Bank (due to successful QIP) showing some strength and Kotak Bank (due to bad results) and HDFC Bank (due to CEO selling shares) showing some weakness at higher levels.
21. Today last one hour of trade is very important.
22. Reason 1: AGR verdict may be out by the end of the day.
23. Reason 2: During Independence Day speech, PM may talk some thing good about Economy, possibly some fiscal measures.
24. So if markets are sideways in the first half, then there will be some sharp move in the afternoon.
25. Markets have been in consolidation mode for the last two weeks, (remember Nifty moved 100 points in last 2 weeks, that is an average of 10 points per day), sooner or later, it will either break out or break down.
26. Probability of breaking out is higher than probability of breaking down, going by the mid cap action.
27. There are 12 stocks under trading ban, 2 higher than yesterday.
28. That shows lot of speculation taking place.
29. So it is Calm before the storm in large cap space.
30. Nifty future may trade between 11280 and 11420.