Pre Market Report, November 18, 2020 | Stocks and Commodities

 November 18, 2020

Time: 8 am

Pre Market Report:

1. US markets closed lower but recovered more than half of the intraday losses.
2. Asian markets are mixed.
3. SGX Nifty is slightly positive.
4. Yesterday Pre Markets showed huge gap up due to Reliance.
5. But later Reliance fell and in fact closed in Red while the markets are at its high.
6. Banking stocks out performed.
7. Auto started recovering now.
8. Metals anyway doing well.
9. FIIs once again bought shares for Rs 5000 crores.
10. This huge buying, continuously, lifted the markets from 11500 to 12900, in just 2 weeks.
11. Only intraday corrections came.
12. Even yesterday, Bank Nifty touched 29100, then fell to 28700, then shot up to 29200.
13. Nifty fell 100 points intraday but recovered almost all losses.
14. This non stop rally is a cause for concern.
15. We need to consolidate, at least for few days.
16. Today, we may consolidate, due to Global cues.
17. In the next one month, there will be more Corona Vaccine news and Stimulus news.
18. So the rally is likely to continue.
19. Laxmi Vilas Bank under moratorium.
20. But that may be a non event for markets.
21. Usually people ignore negative news in bull market and positive news in bear market.
22. Markets may consolidate or correct only when FIIs stop buying in Cash market.
23. Today and tomorrow, markets may not make big moves, going by the Option prices.
24. Last two weeks ATM straddle was trading at Rs 160, two days ahead of expiry.
25. But yesterday, ATM straddle traded at Rs 125.
26. So smart money think, Nifty is not likely to make more than 125 points move on either side.
27. But Bank Nifty ATM straddle was trading around Rs 600.
28. Bank Nifty has been making huge moves.
29. Just few days before, Bank Nifty future hit 28999, then fell to 27700, and again shot up to 29200.
30. Nifty future may trade between 12800 and 12980.