Pre Market Report, August 18, 2020 | Stocks and Commodities

 August 18, 2020

Time: 8 am

Pre Market Report:

1. US markets ended mixed once again.
2. Nasdaq at all time high again.
3. Asian markets are mostly positive.
4. Japan is down due to local cues, Japan Economy contracted most on record.
5. SGX Nifty is almost flat with positive bias.
6. Day before yesterday, Nifty fell nearly 300 points from intraday high to low.
7. Then recovered about 100 points on the same day.
8. Yesterday, markets were highly volatile.
9. In fact, Bank Nifty broke day before yesterday's low, for a moment.
10. Then the short covering came and Bank Nifty shot up nearly 400 points from the low.
11. One day, all weak bulls were thrown out.
12. Doom sayers started talking Nifty @10000 and 9000.
13. Reliance is weak due to AGR case.
14. But Reliance says it has nothing to pay.
15. The hearing is postponed to tomorrow.
16. IDEA is trading firmly around Rs 9.
17. IT stocks out performed yesterday.
18. FIIs bought for Rs 333 crores.
19. But DIIs continue to sell and they have sold for Rs 718 crores.
20. With this DIIs have sold for more than Rs 17,000 crores in last 6 weeks.
21. High dividend stocks are doing very well.
22. I sold REC 100PE at Rs 4.50 and PFC 80PE at Rs 4 two weeks before, now trading below Rs 0.50.
23. They are Cash secured Puts, prepared to take delivery if they fall below these strike prices.
24. More and more stocks entering trading ban.
25. With huge volatility, markets are consolidating between 11000 and 11500.
26. Bank Nifty looks weak, we need to see how HDFC Bank reacts to all kinds of negative news flow.
27. Reliance will be in focus, any meaningful short covering in Reliance will take Nifty above 11400.
28. Last time, break out failed.
29. SBI shot up for no reason few days before, now falling for no reason.
30. Nifty future may trade between 11220 and 11380.