September 8, 2020
Time: 8 am
Pre Market Report:
- US markets were closed yesterday.
- So no big Global cues.
- Dow future recovered all their losses and trading in Green now.
- But still Nasdaq is trading in Red.
- That is not bad as money will be moving from Technology stocks to Non Technology stocks.
- That is sector rotation.
- Sector rotation happens in bull market.
- There are some negatives specific to India.
- One, DIIs keep selling heavily every day.
- Even yesterday, they have sold for Rs 815 crores.
- They have been consistent sellers for the last 9 weeks.
- Second, India-China border problem still going on.
- Over the weekend, Defense Ministers met, now Foreign Ministers meeting.
- Any escalation at India-China border is surely not a good news.
- Positive thing is that US markets are stabilising after a sharp fall.
- Our markets are so volatile.
- Yesterday, in last half an hour, Bank Nifty fell 300 points and then shot up 300 points.
- Reliance supported the market in the last hour.
- ITC opened round Rs 181, shot up to Rs 190.
- ITC is a good buy around Rs 180.
- Usually high volatile market will be the sign that market tops out or bottoms out.
- Due to huge volatility yesterday, yesterday's low should be the low for this series, if there is no negative news from the border.
- But any rise, will be sold into.
- Nifty is likely to consolidate between 11350 and 11550 for next few days.
- There seems to be firing at India-China border which has not happened in last 40 years.
- Though China side claims that it is a waning shot, tensions bound to rise.
- This kind of things happening even after defense ministers of both countries met during the last week end.
- In fact SGX Nifty is trading negative, if that is an indication, India will be the only country to open negative in Asia.
- K V Kamath Committee recommendation may be a non event for Banking stocks.
- Nifty future may trade between 11300 and 11450.
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