October 22, 2020
Time: 8 am
Pre Market Report:
- US markets closed lower.
- There is no announcement of Stimulus so far.
- Negotiations seems to be going on.
- But it is less than 2 weeks for US elections.
- So markets are not worried much.
- In fact, markets expect a bigger stimulus, if Democrats win.
- Asian markets are mostly negative.
- Crude, Gold down.
- That shows Stimulus not coming soon.
- But we can not say anything about this kind of events.
- Coming back to our markets.
- Yesterday was a high volatile day.
- Yesterday afternoon, markets behaved the same way as last weekly expiry.
- Until 1 pm, everything was ok.
- Then Europe fell, then suddenly our markets fell.
- The fall was so severe, Nifty fell about 250 points and Bank Nifty fell about 750 points.
- But there was dramatic recovery also.
- FIIs have bought for Rs 2000 crores and DIIs have sold for Rs 1600 crores.
- That explains the fall and recovery.
- Reliance and TCS dragging the markets while HDFC Bank has supported the markets.
- Bank Nifty may soon take out the recent high of 25200, if the positive sentiment continue in Banking stocks.
- It is a question of another 500 points, that is not a big deal for Bank Nifty.
- Technically Bank Nifty looking more bullish than Nifty.
- Markets are in consolidation mode between 11660 and 12025.
- That is likely to continue until Stimulus news or US elections.
- Markets may not fall much as FIIs pump in huge amount of money.
- So selling 11500PE and below PEs looks safe bet.
- Today weekly expiry, as usual Bank Nifty is likely to be very volatile.
- Yesterday it was up 500, then down 700, then up 600.
- Bajaj Auto comes out with results today.
- That is the first stock from Auto pack.
- So Auto stocks will be in focus today.
- Last Thursday as well as yesterday, Nifty future traded at discount and then markets fell severely.
- So need to watch for premium or discount in Nifty future closely.
- For the time being, it is buy on dip towards 11800 and sell on rise towards 12020 market.
- Nifty future may trade between 11820 and 12020, a wide range considering expiry volatility.
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