Pre Market Report, September 14, 2020 | Stocks and Commodities

 September 14, 2020

Time: 8 am

Pre Market Report:

1. For details of the online workshop, www.workshop.prsundar.com
2. US markets ended mixed on Friday.
3. But Asian markets are positive.
4. When everyone was expecting a sell off in large cap stocks, due to new SEBI regulation wrt Multi Cap Funds, SGX Nifty is trading about 20 points higher.
5. SGX Nifty is up by about 90 points from Friday night closing.
6. FIIs continue to buy in Cash market.
7. They have bought for more than Rs 1000 crores.
8. DIIs continue to sell.
9. They have sold for more than Rs 700 crores.
10. Even in F&O, they have more longs than shorts.
11. Nifty 11500CE has the highest open interest, if markets move beyond 11500, then there will be some short covering.
12. India VIX keep inching lower.
13. That is a good news for bulls.
14. Bank Nifty is the real problem for markets now.
15. After falling nearly 3000 points from intra month high, it is struggling at lower levels.
16. But on Friday, there was some movement in SBI and it crossed 200.
17. But HDFC Bank, the top private sector bank, is still struggling.
18. If HDFC Bank and Bank Nifty starts recovering, then Nifty can resume its rally.
19. Nifty 11200 will be the floor for this series.
20. I sold 11200PE in weekly options also, hoping 11200 will not be broken on the downside.
21. Every month, correction comes, Nifty falls 400 to 600 points, but recovers and scales new high.
22. If that is the trend, Nifty should close around 11800 by the end of this month.
23. Bank Nifty has huge resistance at 22700.
24. If that is crossed, Bank Nifty will see short covering and then Nifty can hope for 11800.
25. So Nifty 11520 and Bank Nifty 22700 levels are very important for short term trading.
26. Reliance is in consolidation mode as there is no incremental positive news.
27. But markets may come under selling pressure at higher levels due to Multi Cap rejig.
28. I have taken long positions in ICICI Bank and HDFC Bank (with Hedge) as Bank Nifty has fallen so much.
29. As long as they are not falling another 2%, I will make some profit.
30. Nifty future may trade between 11420 and 11540.