Pre Market Report, September 17, 2020 | Stocks and Commodities

 September 17, 2020

Time: 7.30 am

Pre Market Report:

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2. US markets ended mixed.
3. Fed indicated lower interest rate for next 3 years.
4. That is good for equity markets in long term.
5. That is also good for Emerging Markets.
6. Low interest means, lot of Dollar Carry trades.
7. But the reaction of world markets is muted.
8. Asian markets are mostly trade with negative bias.
9. SGX Nifty is also down, now trading around 11520.
10. Yesterday Reliance hit fresh all time high.
11. Then profit booking came.
12. Banking stocks are struggling to recover.
13. Bank Nifty was more than 2.5X Nifty, just few months before.
14. But due to huge out performance of IT stocks and Reliance, huge under performance of Banking stocks, now Bank Nifty is less than 2X of Nifty.
15. Despite huge out performance by HDFC Bank, Bank Nifty is just up by 100 points.
16. Bank Nifty fell 3000 points, but struggling to recover even one tenth of that fall.
17. The trend may continue until the end of expiry.
18. Interest on interest case comes up next Thursday.
19. That may become a trigger for meaningful short covering in Banking Stocks.
20. On August 31, Nifty future touched 11795 and fell to 11350.
21. After that Nifty future has not crossed 11600.
22. Yesterday was the first time, Nifty future crossed 11600.
23. That is a bullish sign.
24. So the next target will be 11800.
25. But to reach that target, Bank Nifty has to recover.
26. Nifty future is just 200 points from month high but Bank Nifty future is down by 2600 points.
27. Markets are likely to be volatile due to weekly expiry.
28. Yesterday ICICI Bank and HDFC Bank offered some hope for Bank Nifty.
29. Will that continue? That is a million dollar question now.
30. Nifty future may trade between 11500 and 11640.