Pre Market Report, November 10, 2020 | Stocks and Commodities

 November 10, 2020

Time: 8 am

Pre Market Report:

1. US markets closed higher but off the highs.
2. At highest point, Dow was up 1600 points.
3. But gave up half of the gains.
4. In fact, Nasdaq closed t 2% lower.
5. Money is moving from new economy stocks to old economy stocks.
6. Asian markets are mostly higher.
7. But SGX Nifty is up nearly 200 points.
8. That is a huge gap up, after a stellar rally of 1000 points in 6, 7 trading sessions.
9. There are two main reasons.
10. One, FII buying.
11. Even yesterday, FIIs have bought for more than Rs 4500 crores.
12. That was Rs 1500 crore more than what DIIs have sold.
13. Second, ICICI Bank ADR is up more than 10% and HDFC Bank ADR is up by more than 5%.
14. Whereas ICICI Bank was up 5% and HDFC Bank was up 2.5% here yesterday.
15. There is some over optimism is there right now in our markets.
16. But markets are irrational and can continue to be irrational until all the Bears are killed.
17. Pfizer and BioNTech announced Vaccine that shows positive results in 90% of the patients.
18. With this news, I think all positive news are factored in the markets.
19. Going forward, markets may consolidate.
20. Bihar election results will be out today.
21. NDA is likely to lose as per exit poll results.
22. But that may be a non event for markets.
23. This rally is too fast and too furious.
24. Markets need to consolidate for some time.
25. Banking stocks may continue to do well.
26. IT stocks may take a back seat.
27. ICICI Bank and HDFC Bank will be in Focus.
28. Reliance is another sleeping Tiger.
29. Expect some sharp intraday sell off by DIIs.
30. Nifty future may trade between 12580 and 12780.