Pre Market Report, November 23, 2020 | Stocks and Commodities

 November 23, 2020

Time: 8 am

Pre Market Report:

1. Asian markets are higher.
2. US and European Futures are higher.
3. SGX Nifty is up by about 70 points.
4. Over the weekend, RBI news about new banking license and Mukesh Ambani speaking at Deen Dayal University Convocation are two key positives.
5. Reliance has already corrected Rs 500 from recent high and hence i can reverse from 1900.
6. Top NBFCs will be in focus due to Banking License guidelines.
7. Markets are consolidating with huge volatility as expected.
8. Nifty 13K has the highest OI among Calls.
9. Nifty 12800PE added huge OI on Friday.
10. So smart people expect Nifty to trade between 12800 and 13000.
11. As this is the last week of expiry, time decay will be fast.
12. Since all time high of 12400 crossed, many people are booking profits.
13. That is why DIIs have been selling aggressively.
14. At some point, this selling will subside and at the same time FIIs also can not keep buying for thousands of crores everyday.
15. So logically markets may go for consolidation phase.
16. Nifty is up more than 20% and Bank Nifty up more than 40% in last two months.
17. But any good news about Corona Vaccine, US Stimulus, there can be one more wave of buying.
18. FIIs have pumped in Rs 3860 crores on Friday in Cash market.
19. DIIs have sold for Rs 2867 crores, much less than what FIIs have bought.
20. FIIs have 70% long and 30% short in Futures also.
21. Kotak Bank and IndusInd Bank will be in focus as Promoter shareholding limit has been increased from 15% to 26%.
22. As we are approaching 13K, we can expect some aggressive selling by DIIs.
23. However, if Nifty crosses 13020, then we can expect another 200 to 300 points rally in Nifty in no time.
24. If Reliance moves 10%, that alone will contribute 200 points to Nifty rally.
25. Nifty should take a good support at 12700 and hence we can sell 12700PE on any dip for this expiry.
26. Nifty future may trade between 12820 and 13020 today.