Pre Market Report, August 19, 2020 | Stocks and Commodities

 August 19, 2020,

Time: 8 am

Pre Market Report:

1. US markets ended mixed once again.
2. But both Nasdaq and S&P 500 made fresh all time high.
3. Asian markets are positive.
4. SGX Nifty is up by 40 points.
5. Friday, Monday, Tuesday, what a fantastic market move in 3 days.
6. From 11300 to 11400, then from 11400 to 11100, then from 111000 to above 11400, all in 3 days.
7. I mentioned in my "Dalal Street Week Ahead" video, that Friday's fall of 300 points from intraday high to intraday low, came without any corresponding bad news, so nothing to worry.
8. In just two days time, Nifty crossed Friday high.
9. Reliance supported the market yesterday morning, HDFC Bank in the afternoon.
10. Bank Nifty shot up nearly 900 points from Monday's low to Tuesday's high.
11. AGR Case is being heard today.
12. Reliance may continue to do well. Some news flow is there after few weeks.
13. Reliance retail bought NetMed, online portal for Pharmaceutical products.
14. Yesterday FIIs have bought for Rs 1135 crores.
15. This is a more than Rs 1000 crore purchase after a gap.
16. DIIs have sold for Rs 379 crores.
17. This is a second day of less than Rs 500 crore sell figure in last few weeks.
18.  I mentioned in my last week "Dalal Street Week Ahead" video that we are likely to follow Global cues in absence of any local cues.
19. AGR verdict is an important local cue but that is being postponed many times.
20. IDEA is not moving despite in trading ban.
21. Speculation still seems to be very high as more stocks are under trading ban.
22. Stocks will come out of trading ban, usually after a violent move in price, or option prices have to come down due to time value.
23. I have positions in IDEA and Auro Pharma, both are under trading ban.
24. Nifty should face resistance between 11500-11600 range.
25. That is because, people who sold 11500CE, which has highest open interest, at an average price of Rs 100, will start losing only if Nifty crosses 11600.
26. We are close to upper end of the trading range. So be cautious on long side.
27. Banks and Reliance will be in focus.
28. NBFCs also in focus, watch for Bajaj Finance and Bajaj Fin Serve.
29. Expecting huge Wednesday volatility today.
30. Nifty future may trade between 11320 and 11480.