Pre Market Report, November 19, 2020 | Stocks and Commodities

 November 19, 2020

Time: 8 am

Pre Market Report:

1. US markets closed lower and ended at the lowest level.
2. Schools are closed in US and that triggered a sell off.
3. But Pfizer announced that their Vaccine is 95% effective, earlier they said it is 90%.
4. Asian markets are down.
5. SGX Nifty is down by 60, 70 points.
6. In October, markets rallied for first two weeks and consolidated in the last three weeks.
7. But in November, the rally extended to three weeks.
8. Today, we are coming to the end of third week.
9. Markets need consolidation.
10. Everyday people buying Call and selling Puts making money.
11. Everyday people buying Puts and selling Calls are losing money.
12. US death crossed 2,50,000 due to Corona.
13. That is more than the worst estimate few months before.
14. But here in India, the fall may not be big.
15. Now the rally is spreading to under performing sectors.
16. SBI was up by 10% in 2 days.
17. Auto sector did very well yesterday.
18. M&M up 10%, Tata Motors up 10%, both long time under performers.
19. Auto, PSU Banks doing well shows that other performing sectors may have reached a short term peak and sectoral rotation may happen.
20. That is the typical behavior of bull market.
21. FIIs have pumped in another Rs 3K crores.
22. Yesterday night, SGX Nifty crossed 13K.
23. At least until the end of this November expiry, Nifty 13K should be the resistance.
24. Reliance is still under performing.
25. Trading below 2000 and closing below 2000.
26. Reliance need to move at least 10% for Nifty to cross 13K.
27. Hero Moto announcement of good sales data will help other auto stocks today.
28. Midcaps and small caps are doing well and started participating in the rally.
29. So this rally may be a sustainable rally with possible correction up to 10%.
30. Nifty future may trade between 12820 and 13000.