Pre Market Report, November 12, 2020 | Stocks and Commodities

 November 12, 2020

Time: 8 am

Pre Market Report:

1. US markets closed mixed.
2. For last two days, Dow was up & Nasdaq was down.
3. Yesterday Nasdaq was up and Dow was down.
4. That shows consolidation happening.
5. Asian markets are also mixed.
6. But SGX Nifty is swinging between positive and negative.
7. Yesterday FIIs have pumped in more than Rs 6000 crores, highest in last 5 days.
8. With this they have pumped in more than Rs 25K crore in 5 days.
9. This is an extra ordinary amount, now Nifty is up by 1300 points from series low.
10. That too in just 2 weeks.
11. It is high time, markets have to consolidate.
12. If there is any more rally, then the correction, as and when it happens, will be very painful.
13. Reliance fell more than Rs 100 intraday as there was MSCI weightage reduction news.
14. As I mentioned yesterday, Wednesday volatility was just unbearable.
15. Bank Nifty was up 400 points, then fell 800 points only to move 600 points higher.
16. Even Nifty fell 180 points from high and then shot up more than 180 points to take out morning high.
17. We can expect less volatility today.
18. Metal stocks shot up yesterday.
19. Hotel stocks doing very well, ITC doing very well despite FMCG stocks not doing well, due to ITC Hotel business.
20. Too much speculation started in IndusInd Bank, day before yesterday up 10%, upper circuit, yesterday it was down 8% intraday.
21. HDFC and Kotak Bank doing very well.
22. IT stocks may out perform today. 
23. Infosys ADR is up more than 3% in US.
24. Option premiums are just too high.
25. For today expiry, 12950CE was trading around Rs 7 at yesterday closing.
26. I sold lot of these Options.
27. March 21, Nifty 14000CE trading at Rs 110.
28. So people are so bullish. 
29. Best time to do long term Options, straddle or strangle, is when markets make big move and there are signs of consolidation, just after big move.
30. Nifty future may trade between 12620 and 12800.