Pre Market Report, September 11, 2020 | Stocks and Commodities

 September 11, 2020

Time: 8 am

Pre Market Report:

1. For details of the online workshop, visit www.workshop.prsundar.com
2. Yesterday when our markets closed, Dow future was down more than 300 points.
3. Then when their markets opened, Dow was up more than 300 points.
4. Then markets fell and Dow closed more than 300 points down.
5. A total swing of more than 1000 points.
6. Dow broke Sep 8 low, but Nasdaq did not break.
7. But right now US Futures are higher.
8. Asian markets are mostly down, except Japan and Hong Kong.
9. SGX Nifty is down by about 50 points.
10. Yesterday Nifty was up about 170 points of which 110 points was just due to Reliance.
11. Reliance is planning a 20 billion dollar stake sale to Amazon.
12. Reliance in an Exchange filing, neither denied, nor confirmed it.
13. Markets will take this statement as affirmative.
14. FIIs have bought for Rs 838 crores in Cash market.
15. But DIIs continue to sell, they have sold for more than Rs 300 crores.
16. Interest on interest case postponed by 2 weeks as Govt asked for 2 weeks time for its response.
17. Bank Nifty seems to be over sold.
18. There may be one short covering rally.
19. But do not know when that will happen.
20. Nifty has recovered about 250 points from low but Bank Nifty did not recover proportionally.
21. HDFC Bank is looking weak. That is the main reason for Bank Nifty under performance.
22. For any meaningful recovery, HDFC Bank has to go up.
23. India China Foreign Ministers meet, Interest on Interest case may be going in favour of Banks as Govt asking for 2 weeks time for its response, over sold nature of Bank Nifty, all pointing towards some short covering, it may happen in the last one hour of today.
24. If no short covering happens until the end of the day, I am planning to sell Call options aggressively.
25. Sold many Puts when Bank Nifty shot up to 25300, now sitting with huge losses.
26. I have to manage that loss by selling Call options aggressively.
27. Yesterday we did not follow Global cues.
28. Let us see what happens today.
29. Though US markets were down, Asian markets are not reacting proportionally.
30. Nifty future may trade between 11380 and 11520.