Pre Market Report, September 04, 2020 | Stocks and Commodities

 September 04, 2020

Time: 8 am

Pre Market Report:

1. US markets tubled.
2. Nasdaq down more than 5%.
3. For the last two weeks, US markets kept moving higher.
4. Today, very important data, Jobs data, is due.
5. So markets were over bought, ahead of a key data, profit booking came.
6. But the profit booking is so severe that Nasdaq has fallen more than 5%.
7. We have already seen 2 such profit booking in last one month.
8. Last month, Nifty fell from 11400 to 11100 intraday.
9. Last Monday, Nifty fell from 11800 to 11350 intraday.
10. When it comes to correction or crash, we always do first.
11. Even in 2008, we fell in January, way before other markets.
12. Today's data on Jobs is expected to be good but Private Sector Jobs data that came on Wednesday was not good as expected.
13. That could be one reason for such a huge profit booking.
14. Moreover, when real Economy opens up, money should move from new Economy stocks to ole Economy stocks.
15. Going forward, Dow is likely to do better than Nasdaq.
16. But Asian markets are not reacting as bad as US.
17. Even Dow futures trading close to 200 points higher.
18. Nifty is likely open 100 points down.
19. First some good things.
20. We have already fallen two times just like US fell yesterday, so we may not react proportinally.
21. Both FIIs and DIIs were net buyers (though they bought for very little amount, less than Rs 100 crore) in Cash market.
22. DIIs kept on selling for last two months and supported the markets when Nifty fell from 11800 to 11350 last Monday.
23. So at lower levels, there will be support from DIIs.
24. Things can stabilise in US after today's jobs data (if it is good)
25. Coming to negatives.
26. Banking stocks look very weak, Bank Nifty yesterday broke day before yesterday's low.
27. Technically that is not a good sign.
28. Normally when markets fall, IT stocks will support, now due to Nasdaq fall, IT stocks may also fall.
29. Supreme Court postponed the hearing of Moratorium case to Sep 10 but said that Banks should not consider accounts as NPA until further notice for all the accounts which were not NPA as of August 31.
30. We do not know how this news will be taken by the market.
31. In a normal market, this is actually a good news for Banks.
32. Last Monday low for Bank Nifty future was 23371.
33. That is likely to be broken today.
34. But Nifty future low was 11350.50, that may not be broken.
35. Nifty future may trade between 11400 and 11550