Pre Market Report, September 23, 2020 | Stocks and Commodities

 September 23, 2020

Time: 8 am

Pre Market Report:

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2. US markets closed in Green finally.
3. But Asian markets are mostly down.
4. SGX Nifty is down slightly, by about 10, 15 points.
5. But rest assured, today's market will be highly volatile.
6. Usually Wednesday trades are highly volatile.
7. Now FIIs selling of Rs 2000 crores worth of shares in Cash market, Dollar Index above 94, negative Asian cues, all will add to the volatility.
8. Yesterday Nifty took support around 1100 and Bank Nifty around 21000.
9. With yesterday's fall, Bank Nifty has fallen about 20%.
10. That is one of the most severe corrections.
11. Yesterday Pre Open, Nifty closed above 11300, but sold off as soon as markets opened.
12. In between there were few attempts for recovery.
13. Now markets have become "Sell on Rally".
14. DIIs supported the markets, for the first time in last 3 months, by pumping in about Rs 800 crores.
15. So we can expect them to support at lower levels.
16. The next support for Nifty is at 11000 only.
17. Reliance and HDFC Bank, both were very weak in yesterday's trade.
18. They are Number 1 and 2, in Index Weightage. So that is the reason why Nifty could not sustain at higher levels.
19. The problem in this fall is that 'No meaningful shorts were created'.
20. Since there are no shorts, short covering rally also ruled out.
21. We can expect Nifty to consolidate between 11000 and 11300.
22. Bank Nifty broke 21000 yesterday and that is a very bad news.
23. IT stocks may out perform, Rupee may depreciate today.
24. Selling Call options aggressively both in Index and Stocks.
25. It seems that this volatility will continue until US elections.
26. Planning to add some short positions if Nifty breaks yesterday's low.
27. Shorting Bank Nifty future and selling ATM puts is a good idea.
28. One good thing is that despite fall in markets, India VIX did not move higher.
29. It does not mean markets will rise.
30. That means markets may not fall drastically from here.
31. Nifty future may trade between 11080 and 11280.