Pre Market Report, November 25, 2020 | Stocks and Commodities

 

November 25, 2020

Time: 8 am

Pre Market Report:

1. US markets closed higher on back of Corona Vaccine hope and peaceful transition of Power.
2. Asian markets are higher.
3. SGX Nifty is higher by about 70 points.
4. FIIs, as usual, pumped in another Rs 5K crore in Cash market.
5. But yesterday, markets moved higher without any volatility.
6. Bank Nifty moved steadily.
7. HDFC Bank contributed most to Bank Nifty.
8. But HDFC down significantly in last two days.
9. Reliance is recovering.
10. Nifty rallied from 11500 to 13100 in November series.
11. This is the best rally in last 12 years. (Except 2009 post election gap)
12. FIIs have pumped in Rs 56K crore in November.
13. This is much more than what people thought, about 25K crore, due to MSCI rebalancing.
14. Nifty rallied 25% in last two months and Bank Nifty 50%.
15. Now nobody is talking about 200DMA or Mean Reversion.
16. But the correction, as and when it happens, is also going to be very severe.
17. But there are no signs of it yet.
18. On Friday, Nifty 12800PE added huge open interest.
19. On Monday, it was 12900PE.
20. On Tuesday, it was 13000PE.
21. There is a huge OI at Nifty 13000CE and PE.
22. So these are the people who are betting Nifty range 12800-13200.
23. For one or the other reason, if Nifty crosses 13200, short covering by these people will take Nifty to 13280-13300.
24. Hope that does not happen (as I am also having 13000 short straddle)
25. Bank Nifty is likely to hit all time high today.
26. Today is Wednesday, so expect huge volatility.
27. Usually Wednesdays are most volatile days.
28. India received highest FII investment in last two months.
29. We can expect Nifty to take support at 13000 today.
30. Resistance may be around 13200.