Pre Market Report, August 26, 2020 | Stocks and Commodities

 August 26, 2020

Time: 8 am

Pre Market Report:

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2. US markets ended mixed with Dow down and Nasdaq and S&P 500 hitting fresh all time high.
3. Asian markets are also mixed.
4. But SGX Nifty is trading around 11500.
5. For the last two months FIIs keep buying and DIIs keep sellling.
6. But Nifty shot up by about 1300 points.
7. Yesterday markets were highly volatile.
8. Bank Nifty moved 300 points up and down many times.
9. But at the end, FIIs have bought for Rs 1481 crores in Cash market.
10. That is a huge buying, considering the markets are at the upper end of the trading range.
11. DIIs have sold for Rs 173 crores.
12. That is much less than what FIIs have bought.
13. This could be one reason why SGX Nifty looks bullish.
14. Nifty 11500CE has huge open interest.
15. If Nifty crosses 11520, then short covering by these 11500CE sellers will take Nifty to 11580-11600 levels.
16. Bank Nifty shot up 1300 points from last week Thursday low to yesterday high.
17. So it is 1300 points rally in just 3 days.
18. Now every one has forgotten that Aditya Puri sold HDFC Bank shares for Rs 850 crores.
19. Smaller Pvt Sector banks like Axis Bank, IndusInd Bank supported the rally in Bank Nifty.
20. Even SBI crossed swing high.
21. Reliance is the only drag now.
22. IT stocks are not doing well due to strong currency headwinds.
23. AGR judgment reserved, judgment can come this week or latest by next week.
24. Only then we can expect some good move in Reliance.
25. I sold 11300PE yesterday, hoping that Nifty will not fall below 11300.
26. I expect Nifty to expire between 11400 and 11600.
27. Nifty 11500 straddle is trading around Rs 110 (Combined Premium)
28. The talk of the town is GST council considering lowering GST for two wheelers.
29. Two wheeler stocks should move higher today.
30. Bajaj Auto, Hero Moto Corp, TVS are the stocks to watch.
31. Nifty future may trade between 11420 and 11580.