Pre Market Report, October 19, 2020 | Stocks and Commodities

 October 19, 2020

Time: 8 am

Pre Market Report:

1. US markets closed higher on Friday.
2. But they closed much lower form intraday high.
3. Over the weekend, Pelosi has set Tuesday as deadline for Stimulus talks.
4. So hopes are reviving again on Stimulus front.
5. So Asian markets are higher.
6. SGX Nifty is up nearly 80 points.
7. That is a big gap up.
8. China data is mixed.
9. Retail sales was up but GDP data is below street expectation.
10. For last two trading sessions, both FIIs and DIIs were net sellers.
11. IT stocks fell despite good results.
12. Reliance broke 2200.
13. These are negative news.
14. On positive side, we have better Global cues.
15. FIIs in F&O seems to have more longs than shorts.
16. Since IT stocks and Reliance fell on back of news flow, we can say that had news has already factored in.
17. For last few months, there were many sell offs.
18. Intraday falls were very severe, on August 31, Nifty fell 450 points intraday.
19. But after few weeks that day's high crossed.
20. If we go by that, Nifty should cross 12000 sooner or later.
21. We need to see how HDFC Bank reacts to its results.
22. If HDFC Bank does well, other banks will also do well.
23. Bank Nifty has to move higher if Nifty has to cross 12000 in short term and 12400 in medium term.
24. Reliance, IT Stocks, Banking Stocks will be in focus today.
25. Intraday volatility will be there as both FIIs and DIIs are selling.
26. Even on Friday, though markets opened with huge gap up, it broke previous day's close intraday.
27. Though markets went up on Friday, Call premiums did not shoot up.
28. That shows that we are in for consolidation than trending.
29. Nifty may consolidate between 11700 and 12000 for next few days.
30. Today Nifty future may trade between 11770 and 11920.