Pre Market Report, August 31, 2020 | Stocks and Commodities

 August 31, 2020

Time: 8 am

Pre Market Report:

1. Asian markets are higher.
2. Japanese PM has resigned due to health reason. (How many PM or CM will resign in India?)
3. Yet Japan market is up significantly. (Will our markets go up if our PM resigns?)
4. (Mind Voice: Congress supporters will say "YES")
5. SGX Nifty is around 11750.
6. That is a decent gap up of about 75 points.
7. This is despite Nifty ending at the highest point.
8. Nifty has already shot up more than 2000 points in last 3 months.
9. Only last week RBI Governor said markets will correct.
10. Markets are moving higher with more momentum after that.
11. Today's talk of the town is Reliance buying Future Retail.
12. Reliance has not been participating in the Nifty rally from 11200 to 11700.
13. With this news, we have to see how Reliance performs.
14. Second big news is the extension of Moratorium by Banks.
15. They are waiting for RBI guidelines.
16. It is possible the Moratorium may not be extended.
17. That could be a reason why Banking stocks rallied on Friday.
18. In my opinion, sector specific moratorium may continue.
19. Today evening, we will get GDP data (Expected figure is minus 19%), core sector growth, Fiscal deficit data, tomorrow Auto sales data, anytime news from RBI regarding Loan Moratorium.
20. All these news flow will make markets volatile.
21. FIIs were net buyers for more than Rs 1000 crore on Friday.
22. DIIs have sold about half of what FIIs bought.
23. Dow turned positive for the year 2020.
24. Even Nifty is just 7% away from all time high.
25. But Bank Nifty is 25% away from all time high.
26. If Bank Nifty moves another 10 to 15%, Nifty can easily cross all time high.
27. So Reliance, Banking stocks, Auto stocks will be in focus.
28. China PMI data came at 51, still indicating expanding Economy.
29. European and US futures are higher.
30. Nifty future may trade between 11680 and 11800.