Pre Market Report, November 27, 2020 | Stocks and Commodities

 November 27, 2020

Time: 8 am

Pre Market Report:

1. Yesterday US markets were closed.
2. Asian markets are mixed.
3. European and US futures are down slightly.
4. SGX Nifty is up slightly.
5. After one day of pause, resumed their buying.
6. FIIs have bought for Rs 2027 crores.
7. But DIIs have sold for Rs 3400 crores which is much higher than FII buy figure.
8. But markets were up, as people have shorted heavily the day before.
9. November series, Nifty low was 11500 and high was 13150.
10. FIIs have pumped in nearly Rs 60K crores, highest ever monthly flow.
11. On an average, world markets were up by 10 to 12%.
12. Bank Nifty out performed.
13. Most interesting thing about October, November rally is that Nifty is up by more than 20% and Reliance, highest weighted stock, is down by more than 20%.
14. December series begins with huge optimism.
15. Usually markets correct when a series begins with huge optimism.
16. Number one, Nifty has already moved more than 20% in last two months and Bank Nifty moved about 50%.
17. Second, FIIs can not keep pumping money this forever. We have seen how markets fell on Wednesday when FIIs just paused. What would have happened if they have sold?
18. Three, usually December month is a profit booking month for FIIs due to account closure as they work with Jan-Dec Financial year.
19. FIIs long position is at 77% in Futures while short positions is at 23%.
20. This is one of the highest long-short ratio.
21. Usually markets correct when this ratio is high.
22. Today evening GDP data will be out.
23. But that is lag indicator, markets ignore.
24. I am planning to take some short positions in Bank Nifty, if Bank Nifty touched 30K.
25. Planning at average shorts at every 1000 point move.
26. Will also hedge through Options.
27. December series is a 5 week series.
28. Usually 5 week series is not good for Option writers.
29. Markets tend to move all over the places.
30. Nifty future may trade between 12950 and 13150.