October 8, 2020
Time: 7.40 am
Pre Market Report:
- US markets closed higher.
- It gained more than what was lost in the previous day.
- Previous day, markets fell as Trump stopped Stimulus negotiation.
- But yesterday he was seeking many small aid packages specific to sectors.
- Moreover, people think, surely Democrates will win the election in the next one month.
- And when they win, larger stimulus than what Trump proposes will come.
- Asian markets are higher.
- Infosys ADR is up by 4.5%.
- So IT stocks may go up 3 to 4% here.
- TCS came with good results, WIPRO announced share buyback.
- So today, once again IT will lead the markets higher.
- SGX Nifty is trading around 11800.
- This is a fantastic rally of 1000 points in two weeks.
- Except in 2009, when Nifty opened gap up 20%, I do not remember Nifty shooting up 1000 points in two weeks.
- Few times Nifty shot up 1000 points in one month.
- But this time, in 6 weeks, Nifty fell 1000 points and then shot up by 1000 points.
- Option writers are struggling.
- Call option premiums are shooting up but Put premiums not coming down.
- Last 6 weeks is one of the worst period for Option writers.
- Yesterday, as expected, Reliance supported the markets.
- But late afternoon, profit booking dragged Reliance.
- But by that time, HDFC Bank and TCS started moving higher.
- So markets closed near the day's high.
- FIIs have bought for more than Rs 1000 crores while DIIs sold for more than 1000 crores.
- That game is likely to continue today also.
- Though markets keep going higher, everyday, intraday fall also comes without fail.
- That is more visible in Bank Nifty.
- TCS is likely to open 3 to 4% higher, I have sold 2700 straddle.
- I will have to manage by selling more puts, if moves more than 4, 5%.
- Nifty future may trade between 11700 and 11850.
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