Pre Market Report, September 16, 2020 | Stocks and Commodities

 September 16, 2020

Time: 8 am

Pre Market Report:

1. For details of the online workshop, www.workshop.prsundar.com 
2. US markets closed in Green but of the highs.
3. So Asian markets are mostly flat.
4. SGX Nifty is down by about 20 points.
5. After a long time, Bank Nifty closed at the highest point of the day.
6. This month, Reliance is up about 10%, IT index is up about 10%, but Bank Nifty is down by about 10%.
7. IT, Pharma, Reliance have been doing well.
8. In case, if Bank Nifty recovers one third of what it lost, Nifty can retest 11800.
9. Incremental positive news keep coming for Reliance and that is holding above 2300.
10. HDFC Bank turned around yesterday, after huge selling.
11. Going forward, we can expect Bank Nifty to out perform, just because it is over sold.
12. FIIs were net buyers in Cash market and they bought for Rs 1171 crores.
13. What is surprising, DIIs are net sellers for the 11th straight week.
14. DIIs have sold for Rs 896 crores.
15. Bank Nifty 22000PE went from Rs 60 to Rs 300 on Monday, came down to Rs 70 on Tuesday.
16. Hopefully, goes to zero by tomorrow.
17. I have sold both 22000PE and 23000CE in Bank Nifty for tomorrow expiry.
18. In this months, we have not been following Global cues on many days.
19. Bank Nifty resistance is at 22800.
20. If that is crossed, we can expect further short covering to take Bank Nifty above 23000.
21. We need a trigger for that, who knows? Fed meeting outcome can be a trigger.
22. Otherwise, generally Fed meeting is a non event.
23. Reliance has been consolidating, I sold 2100PE and 2500CE to enjoy the time decay.
24. Bank Nifty future may trade between 22200 and 23000.
25. Nifty future may trade between 11460 and 11580.