Pre Market Report, November 2, 2020 | Stocks and Commodities

 November 2, 2020

Time: 7.45 am

Pre Market Report:

1. US markets closed lower on Friday.
2. But Asian markets are higher now.
3. SGX Nifty is trading around 11680.
4. Over the weekend, England announced lockdown.
5. So European and US futures have opened lower today morning but recovering now.
6. China Manufacturing PMI came just now at 53.6 which is better than expected.
7. Reliance and ICICI Bank came with results during the weekend.
8. I expect Reliance to open slightly lower and ICICI Bank to open higher.
9. IndusInd Bank also may open lower.
10. On Friday Nifty future fell about 250 points from intraday high and Bank Nifty fell more than 750 points.
11. That is the kind of volatility and that is expected even for the next few days.
12. There was no specific reason for such a fall, Dow future was down about 500 points at that time, also without any reason.
13. FIIs were net sellers and DIIs were net buyers.
14. But we have to remember that another 15 billion US  dollar will have to come to Indian stocks due to MSCI rebalancing.
15. So once Global uncertainty is over, we can expect Nifty to move higher.
16. That is the reason why 11500PE has highest OI among Put options.
17. For today's trade, we have watch 11750 levels.
18. That was Friday's high.
19. Markets may find some resistance there.
20. The concern is the Corona in Europe and Elections in US.
21. At least Election uncertainty may go away in next few days but Corona uncertainty will continue until vaccine is found.
22. Auto stocks will be in focus after record sales by many auto companies.
23. IndusInd Bank, Reliance, ICICI Bank will be in focus after their results.
24. HDFC will be in focus ahead of its results.
25. India Manufacturing PMI will be out today and it is expected to be good.
26. In my opinion, we have better local cues and bad Global cues.
27. So once Global uncertainties are over, we will move higher.
28. I am selling 10000PE, 9500PE, 9000PE in March 21 series, expecting no big fall in our markets in next few months.
29. As an hedge, planning to sell 14000CE as and when markets move higher.
30. Nifty future may trade between 11520 and 11780.
31. For next few days, I would advise traders to keep away from markets.
32. Markets can be highly volatile and traders SL may be hit both sides.