Pre Market Report, October 15, 2020 | Stocks and Commodities

 October 15, 2020

Time: 8 am

Pre Market Report:

1. US markets closed lower.
2. No significant improvement in stimulus talks.
3. Since there are only 3 weeks to go for Election, people are so particular who will get the credit for the Stimulus.
4. That is the main reason why Democrates and Republicans could not agree.
5. Asian markets are mostly down.
6. But SGX Nifty is trading around 12K.
7. That is because of good results from Infosys.
8. Infosys ADR is up 4%.
9. Infosys was down 1% here yesterday.
10. So it has potential to go up by 5%.
11. But ADR may not be a good indication on results day.
12. Yesterday WIPRO fell 7% but US ADR was down only 2%.
13. It all depends on how much long or short are there.
14. Yesterday IV has come down significantly and hence the Option premium in Infosys.
15. That is why I did not take any positions in Infosys.
16. Infosys 1150 short straddle has already given a profit of Rs 24000 yesterday.
17. Even OTM option 1200CE fell more than the future.
18. Banking sector will be in focus.
19. Yesterday it was a good short covering rally of more than 800 points from intraday low.
20. But there was no verdict from Supreme Court on Interest on Interest case.
21. Things are also not clear.
22. Govt has already file affidavit.
23. Supreme Court asked Govt why they have not implemented?
24. When the case is in Court, when they filed affidavit, how can they implement?
25. Now case has been postponed to November 2.
26. So Banks may under perform while IT is out performing today.
27. There was huge short covering in HDFC Bank ahead of the results this Saturday.
28. As usual in every bull phase, DIIs sold aggressively while FIIs bought aggressively in Cash market.
29. Reliance, Banking, IT stocks will be in focus.
30. Nifty future may trade between 11920 and 12080.