Pre Market Report, November 26, 2020 | Stocks and Commodities

 November 26, 2020

Time: 8 am

Pre Market Report:

1. US markets ended mixed.
2. Asian markets are mixed.
3. SGX Nifty is up by 60, 70 points.
4. In September and October series, Nifty came under severe selling pressure in intraday between 150 points and 450 points many times.
5. But markets ultimately moved higher.
6. In November, though Nifty rallied from 11500 to 13150, there were less intraday volatility.
7. But yesterday, Nifty fell more than 300 points and Bank Nifty fell more than 1000 points intraday.
8. I expected this fall today, but it has happened yesterday.
9. Because today US markets closed, there may not be significant Global cues.
10. May be due to this reason, Operators decided to bring intraday volatility on Wednesday itself.
11. At the end of the day, FIIs have bought very little, for less than Rs 50 crores.
12. But DIIs have sold for about Rs 1850 crores.
13. Since FIIs stopped buying in Cash market, DIIs may also stop selling today.
14. With this expectation, SGX Nifty is higher by 70 points.
15. As long as there is no follow through selling today, yesterday's fall is considered as a profit booking, as Bank Nifty hit swing high.
16. This can not be taken as trend reversal.
17. Today US markets closed, tomorrow, it will function only for half a day, Monday is holiday in India.
18. So there may be some good action here in India due to these factors.
19. SEBI has withdrawn margin increased margin requirement for Non F&O stocks in Cash market.
20. That is a positive news but not market moving news.
21. What was surprising in yesterday's trade is India VIX up by 10% without any corresponding news flow.
22. PSU Bank index was the only sectoral gainer yesterday.
23. After adding huge OI at 12800, 12900, 13000PE for last 3 days, yesterday 12900, 13000CE added huge open interest.
24. There was unwinding in PEs.
25. Bank Nifty saw huge OI being added at 30000.
26. Nifty may trade between 12800 and 13000.
27. Bank Nifty may trade between 29000 and 30000.
28. Bank Nifty has been making very big moves.
29. HDFC is looking very weak, corrected more than 150 points in last few days.
30. Markets can be volatile due to expiry.