Pre Market Report, October 22, 2020 | Stocks and Commodities

 October 22, 2020

Time: 8 am

Pre Market Report:

1. US markets closed lower.
2. There is no announcement of Stimulus so far.
3. Negotiations seems to be going on.
4. But it is less than 2 weeks for US elections.
5. So markets are not worried much.
6. In fact, markets expect a bigger stimulus, if Democrats win.
7. Asian markets are mostly negative.
8. Crude, Gold down.
9. That shows Stimulus not coming soon.
10. But we can not say anything about this kind of events.
11. Coming back to our markets.
12. Yesterday was a high volatile day.
13. Yesterday afternoon, markets behaved the same way as last weekly expiry.
14. Until 1 pm, everything was ok.
15. Then Europe fell, then suddenly our markets fell.
16. The fall was so severe, Nifty fell about 250 points and Bank Nifty fell about 750 points.
17. But there was dramatic recovery also.
18. FIIs have bought for Rs 2000 crores and DIIs have sold for Rs 1600 crores.
19. That explains the fall and recovery.
20. Reliance and TCS dragging the markets while HDFC Bank has supported the markets.
21. Bank Nifty may soon take out the recent high of 25200, if the positive sentiment continue in Banking stocks.
22. It is a question of another 500 points, that is not a big deal for Bank Nifty.
23. Technically Bank Nifty looking more bullish than Nifty.
24. Markets are in consolidation mode between 11660 and 12025.
25. That is likely to continue until Stimulus news or US elections.
26. Markets may not fall much as FIIs pump in huge amount of money.
27. So selling 11500PE and below PEs looks safe bet.
28. Today weekly expiry, as usual Bank Nifty is likely to be very volatile.
29. Yesterday it was up 500, then down 700, then up 600.
30. Bajaj Auto comes out with results today.
31. That is the first stock from Auto pack.
32. So Auto stocks will be in focus today.
33. Last Thursday as well as yesterday, Nifty future traded at discount and then markets fell severely.
34. So need to watch for premium or discount in Nifty future closely.
35. For the time being, it is buy on dip towards 11800 and sell on rise towards 12020 market.
36. Nifty future may trade between 11820 and 12020, a wide range considering expiry volatility.