Pre Market Report, September 03, 2020 | Stocks and Commodities

 September 03, 2020

Time: 8 am

Pre Market Report:

1. US markets closed at another record high.
2. Asian markets are mostly positive.
3. Indian markets are struggling.
4. Nifty is doing better but Bank Nifty has not been doing well.
5. In fact, yesterday, whole day it was trading with negative bias, only in last one hour, it moved.
6. Yesterday night, though European and US markets were higher, SGX Nifty was very weak, traded below 11500.
7. Let us try to understand what is happening.
8. Right now, we are not worried about Global cues, worried about local cues.
9. The AGR case finally came to an end but not loan moratorium case.
10. The hearing continues today at 2 pm.
11. Another reason for huge volatility in the last one hour of today's trade.
12. But that affects only Bank Nifty.
13. But what is happening to the overall market.
14. Last time, news broke out that there was a stand off between Chinese and Indian troops at Doklam.
15. During that period, in fact ever since that incident, Indian markets are looking for clue form Hong Kong, rather than Asia.
16. Since the problem is between India and China, China markets being highly regulated, controlled, Hong Kong is seen as a proxy for real situation in China.
17. So we follow Hong Kong markets closely.
18. When all European and US markets were higher significantly, SGX Nifty was down more than 80 points as Hong Kong Futures was down.
19. Even today morning, though Asian markets all positive, Hong Kong opened negative, SGX Nifty was negative.
20. Now Hong Kong is improving, so the SGX Nifty.
21. Hong Kong turned positive, so SGX Nifty also turned positive.
22. We are clearly under performing world markets due to India-China border issue.
23. Markets are worried, suddenly, either side may report some casualty and tensions may increase.
24. Markets will slowly catch up, if there are no negative news from border front.
25. That will take time, may be one or two weeks.
26. If markets resume its up trend, then Bank Nifty is likely to out perform.
27. We can expect 200DMA which is above 25000 to touch by the end of this expiry.
28. Dollar index is inching up.
29. Rupee is likely to open about 30 paise lower.
30. FIIs as usual buyers and DIIs as usual sellers in Cash market.
31. Markets may trade range bound but last one hour will see some action.
32. Nifty future may trade between 11470 and 11620.