Pre Market Report, October 1, 2020 | Stocks and Commodities

 October 1, 2020

Time: 8 am

Pre Market Report:

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2. US markets closed higher.
3. Dow futures was down more than 200 points when our markets closed.
4. After Private Sector ADP Jobs data, US futures shot up.
5. Asia is higher but many markets are closed.
6. Hong Kong, South Korea, China are closed.
7. SGX Nifty is more than 100 points up.
8. Nifty was trading between 11180 and 11300 with huge volatility.
9. Usually such a high volatility means, once the level is broken, markets will move significantly.
10. So traders were waiting 11180 on the downside for shorting and 11300 for taking long position.
11. But this huge gap up is a big problem for those traders.
12. FIIs continue to sell in Cash market.
13. Yesterday they have sold for Rs 712 crores.
14. With this they have sold for about Rs 13000 crores in last two weeks.
15. Yesterday HDFC Bank did well.
16. So today morning non banking stocks may out perform.
17. In last 30 minutes yesterday, Reliance fell about Rs 40 and Bajaj Finance fell about Rs 60.
18. These stocks may see huge gap up, trapping the short sellers.
19. Everyday some good news is being flashed in CNBC TV18 about Reliance.
20. Today is no exception.
21. But Reliance shares are not moving significantly.
22. At the same time, it is not falling also.
23. I sold 2300CE, 2400CE, 2500CE for my future long positions.
24. Expecting a big move in Bank Nifty towards the end of the day, if there is no big move during the day.
25. There are few reasons.
26. One, when markets reversed in October series, Nifty did not fall much after retracement.
27. Nifty fell only about 50 points.
28. But Bank Nifty fell 400 points from recent high of 21800 plus.
29. Tomorrow is a holiday, so we have 3 day weekend.
30. Usually traders will like to square off their positions ahead of such a long week end.
31. Moreover, tomorrow being first Friday of the month, US Jobs data is due.
32. Since Private Sector Jobs data is already good, people expect this data also to be good.
33. Since Bank Nifty is over sold compared to Nifty, there may be a meaningful short covering today.
34. On top of this, on Monday morning "Interest on Interest" case verdict may come.
35. So due to all these issues, traders will like to close their positions.
36. It seems that there are more shorts in the system.
37. Last Thursday, it was a trending day on the downside.
38. This Thursday, it may be just opposite.
39. Once Nifty takes out 11300, next resistance will be at 11550 only.
40. Nifty future may trade between 11300 and 11420.