October 09, 2020
Time: 8 am
Pre Market Report:
- US markets closed higher.
- Right now, US Futures are also higher.
- Trump is willing to restart the Stimulus negotiation.
- But Asian markets are mixed.
- China opened after one week holiday.
- South Korea and Taiwan closed for holiday.
- Yesterday, it was TCS and HDFC Bank that supported the markets.
- HDFC Bank has gone up nearly 20% from last month low.
- Nifty future crossed 11900 and then profit booking set in.
- Today RBI policy is a key event.
- But nobody is expecting any rate cut.
- This time, policy announcement is at 10 am.
- Bank Nifty may be volatile during first one hour.
- The next big thing is "GST rate cut from 28% to 18%".
- According to Industry ministry, announcement is expected soon.
- This will help all auto stocks.
- Today Auto stocks may out perform.
- Corona virus also seems to have peaked out in India.
- Some positive news coming from that front, incremental infections are less, recovery is also improving.
- Reliance started under performing, after just one day of out performance.
- Any reduction in GST for auto sector, will be a good news for Banks also.
- Lower interest rate and less price for Autos will help Banks to lend more.
- Since 11800, the previous high has been taken out comfortably, next target for Nifty will be 12000.
- Will not be surprised if Nifty hits 12000 by this expiry itself.
- SGX Nifty is trading about 50 points higher.
- Markets can be choppy ahead of RBI policy.
- Auto, IT, Banks will be in focus.
- Planning to sell Maruti ATM Put.
- Also planning to do short straddle in WIPRO.
- Nifty future may trade between 11800 and 11920.
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