Pre Market Report, August 20, 2020 | Stocks and Commodities

 August 20, 2020

Time: 8 am

Pre Market Report:

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2. US markets closed lower.
3. Fed minutes stated that due to Corona US Economy will have difficulties in the medium term.
4. But Apple market cap crossed US$ 2 trillion.
5. Now Apple market cap is equal to the market cap of all BSE listed stocks put togerther.
6. Asian markets are falling.
7. SGX Nifty futures is down by about 140 points.
8. This is a huge gap down.
9. Dollar index is moving higher, which is not good for Emerging markets.
10. In addition to Global cues we have some local cues also.
11. There was a report that said Retail loans are under restructuring by K V Kamath Committee.
12. That could be one reason for bullishness in Banking Stocks.
13. But yesterday, the news came that Retail loans is not being considered under K V Kamath Committee.
14. Both HDFC Bank and ICICI Bank ADRs are down by more than 1%.
15. AGR hearing came at 3 pm every time but today it is at 2 pm.
16. If there is any news from that case, the volatility will increase towards the end.
17. Bank Nifty is likely to open below 22000.
18. Yesterday most stocks were up but Open Interest came down.
19. So everything is looking negative suddenly.
20. But FIIs continue to buy in Cash market, they have bought for Rs 459 crores.
21. DIIs also cut down their selling, they have sold just for Rs 97 crores.
22. Yesterday I mentioned that "Last Friday Reliance supported the market, India VIX was below 20, markets sold off suddenly, Nifty fell 300 points intraday"
23. Same thing happened yesterday but markets did not fall yesterday, but will fall today.
24. More and more stocks are coming under trading ban.
25. That is actually not a good sign, people who have positions, can not do hedging.
26. Expect high volatile market today.
27. Usually Wednesday used to be very volatile.
28. But yesterday Nifty traded within a range of 60 points and that too for most part of the day, it was trading within 40 points range.
29. So today there will be double volatility.
30. Nifty future may trade between 11250 and 11400.