Pre Market report, November 5, 2020 | Stocks and Commodities

November 5, 2020

Time: 8 am

Pre Market Report:

1. Yesterday, as expected, markets were volatile.
2. Until afternoon, it was trading stable.
3. Then Trump announced that he will go to Supreme Court to stop counting of votes.
4. Immediately Nifty fell 150 points and Bank Nifty fell 600 points.
5. Within minutes, buying came, Bank Nifty shot up 700 points and Nifty 200 points.
6. In the last half an hour, there was some cooling, but both Nifty and Bank Nifty closed in Green.
7. US markets also went for roller coaster ride.
8. US markets were higher.
9. Asian markets are also higher.
10. SGX Nifty hit a high of 12165.
11. But now it is trading around 12080.
12. If that is an indication, it will be huge gap up.
13. Even in US, Nasdaq out performed.
14. So IT index is likely to out perform here.
15. SBI results were not bad.
16. Both FII and DII figures are too small.
17. Still, markets making big moves.
18. Remember, still Rs 15000 crores will have to come to India due to MSCI rebalancing.
19. That can propel the Nifty to all time high.
20. In US, VIX fell 20%.
21. But here, it did not even fall 5%.
22. So going forward, we can expect VIX to fall further.
23. Reliance has turned around, closed above 1900.
24. With IT stocks out performing, Reliance finding bottom, Banks started out performing, there is no reason to be bearish now.
25. I stated earlier, Nifty 11500PE had the highest OI even when Nifty future was trading around 11500 on the very first trading session.
26. I said, 11500 will be a good support.
27. Now I am planning to sell Put options on every dip in the market.
28. Recent high for Nifty is 12025, now markets are opening gap up, above this level, technically it is a bullish sign.
29. If Nifty closes above 12025 today, then 12K will become support for next few weeks.
30. Nifty future may trade between 11920 and 12180.