September 09, 2020
Time: 8.10 am
Pre Market Report:
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- Yesterday morning, Dow future was up 350 points but when markets opened, fell 650 points.
- That is a whopping 1000 points fall, after falling 2 days prior to that.
- Nasdaq has fallen more than 10% in 3 days.
- Tesla fell more than 20% as it was denied entering s&P 500 index.
- Asian markets are down.
- SGX Nifty is trading around 11270.
- That is because we have already fallen 150 points yesterday afternoon.
- But still we have to see when market opens.
- Day before yesterday low for Nifty future was 11266.
- I think that will be broken easily.
- Bank Nifty is looking more weak and falling and making new lows.
- Yesterday both Nifty and Bank Nifty closed at their lowest point.
- On close to close basis, Nifty did not fall much but Bank Nifty fell significantly.
- Is everything negative?
- No, there are some positives.
- First, DIIs have turned net buyers.
- Since they have been selling for last 10 weeks, they can support the market at lower levels.
- Second, Crude has fallen by about 8% and that is good for us.
- Brent crude is below US$40.
- S&P 500 futures right now showing some green tick.
- Usually markets will stabilise after falling 3 days and 10% fall.
- So US markets may stabilise at lower levels.
- Remember the fall came without any corresponding negative news.
- So it is just excessive optimism has resulted in huge profit booking.
- Asian markets are falling as they did not factor in US fall.
- But we have factored in, yesterday afternoon.
- Pharma stocks will be in focus after Astrazeneca paused corona trails.
- Banks, Pharma looking more weak.
- Reliance has been supporting the market for last two days.
- Nifty future should take support at 11220.
- Resistance may come at 11400.
- Not a good idea to short the market at open.
- However, can short with hedge as and when Nifty future trades above 11320.
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