October 12, 2020
Time: 8.10 am
Pre Market Report:
- US markets closed higher on Friday.
- Asian markets are mostly positive.
- SGX Nifty is slightly above 12000.
- If opens as per SGX Nifty indication, then it will be 1200 points rally in 11 days.
- This series will be unforgettable series for Bulls.
- Nifty crossing 12000 without the help of Reliance.
- Even Bank Nifty is down more than 1200 points from September high.
- IT stocks are the major contributors. in this rally.
- WIPRO more than doubled in last few months.
- ATM Straddle trading at more than 10% premium ahead of results.
- Today WIPRO will declare results after market hours.
- HDFC Bank is up by about 20% from September low.
- But ITC and PSU Banks have not recovered.
- If ITC, Reliance and SBI start performing, then market can rally towards all time high.
- We are just 4% from all time high.
- FIIs were net sellers for Rs 29 crores.
- Though this is a small figure, they have turned net sellers after buying for more than Rs 1000 crore everyday for last many days.
- So if there is any correction, this could be a trigger.
- So today one has to be careful at higher levels.
- In October series both IT and Banks have done extremely well.
- WIPRO, Infosys, Mindtree, HCL TEch and HDFC Bank are set to declare results this week.
- Today evening IIP data and CPI Inflation data will come.
- Markets need at least consolidation for some time.
- This is too fast and furious rally.
- US Stimulus negotiation out come will also decide the direction of the market this week.
- If there is any positive outcome in Stimulus negotiation, if corporate results are good, if Reliance starts performing, then no one can stop this rally until Nifty tests 12400.
- Next 3 weeks, there are lot of action can be expected.
- I am planning straddles in WIPRO towards the end of the day.
- Nifty highest OI among Calls shifted to 12500 from 12000.
- Nifty future may trade between 11880 and 12080.
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