Pre Market Report, October 26, 2020 | Stocks and Commodities

 October 26, 2020

Time: 7.45 am

Pre Market Report:

1. US markets ended mixed on Friday.
2. Today Asian markets are also mixed.
3. SGX Nifty is almost flat.
4. Over the weekend, there were no positive news.
5. US Stimulus agreement has not happened.
6. Corona infections at its peak in US.
7. Vice President's close associates are infected.
8. Poland president is infected.
9. But despite all these, somehow I feel, markets are bullish.
10. The talk of the town is Kotak Bank looking to take over IndusInd Bank.
11. Do not know whether these are "arranged news" or genuine one.
12. Last time, the news came that Warren Buffet buying stake in Kotak Bank and that never happened.
13. Last quarter, when results came, all banks moved higher, except Kotak Bank.
14. This news could be form bull cartel in Kotak Bank.
15. Both Kotak and IndusInd Bank denied this news.
16. Nearly 30% of Nifty 50 stocks set to declare results this week.
17. So stock specific action likely to continue.
18. Auto stocks did very well on Friday.
19. Bank Nifty will be in focus ahead of Kotak Bank results today.
20. Kotak Bank, Axis Bank, IndusInd Bank, Bank of Baroda, ICICI Bank are set to declare results this week.
21. US futures are down.
22. Since markets fell drastically after crossing 12K two times in this month, people will like to short around 12K with Stop Loss between 12020 and 12050.
23. So we can expect any breakout only if Nifty crosses 12050.
24. Until then it is consolidation for few more days.
25. We need a positive trigger to break out.
26. Though FIIs seems to be bullish in Cash market, in F&O markets, they seems to be not bullish.
27. They sold more Calls than Puts. Shorts are added, longs were seen unwinding.
28. But this kind of market set up is required for a break out, if it has to happen.
29. Earnings heavy week, anything can happen.
30. Nifty future may trade between 11840 and 12020.