Pre Market Report, October 6, 2020 | Stocks and Commodities

 October 6, 2020

Time: 7.35 am

Pre Market Report:

1. US markets closed higher.
2. Asian markets are positive.
3. SGX Nifty is up by 30, 40 points.
4. Trump has been discharged from Hospital.
5. Joe Biden has a clear lead over Trump.
6. Markets are assuming that the election verdict will be a clear one and hence there will be peaceful transfer of power.
7. That is one of the reasons for bullishness in US.
8. Here in India, TCS was up 7.5% on buyback announcement.
9. Infosys and TCS alone contributed 75 points for Nifty rally yesterday.
10. FIIs were net buyers in Cash market for Rs 237 crores.
11. But DIIs have turned net sellers after two weeks.
12. They have sold for Rs 472 crores.
13. I think, they should have sold at higher levels.
14. TCS begins the results season and declaring results tomorrow after market hours.
15. IV has gone up in TCS.
16. Interest on Interest case has been postponed once again.
17. That was the reason for profit booking in Banking Stocks at higher levels.
18. Nifty is just 200 points away from recent high.
19. After falling 1000 points from recent high, it has recovered about 80% of the fall.
20. This is a V shape recovery.
21. Reliance and ITC have been under performing.
22. Who knows, Reliance has the tendency to make big move when everyone think it is bearish.
23. Though it is not moving higher, it is not falling also.
24. Markets traded yesterday with huge volatility.
25. India VIX was up despite higher markets.
26. Even in US, S&P 500 VIX was higher despite markets moving higher.
27. Usually this is a sign of big move on the higher side.
28. Once Nifty crosses 11600 comfortably, next target will be 11800.
29. If corporate results are good, then Nifty will test 11800 comfortably.
30. Today Nifty future may trade between 11480 and 11620.