Pre Market Report, November 6, 2020 | Stocks and Commodities

 November 6, 2020

Time: 7.45 am

Pre Market Report:

1. US markets closed higher.
2. Asian markets are also higher.
3. SGX Nifty is almost flat.
4. Now we are just 2% away from All Time High.
5. This is happening despite not so clear political picture in US.
6. Once there is a clarity and a possible announcement of Stimulus, we may even hit ATH in this series itself.
7. Yesterday India VIX crashed about 9%.
8. But US VIX crashed about 30% in last two days whereas ours crashed only 15%.
9. So going forward, VIX can come down even more.
10. FIIs have bought for more than Rs 5000 crores while DIIs have sold for more than 2000 crores.
11. I am also planning to sell some of my equity holdings if Nifty trades above 12200.
12. IT stocks will be in Focus as Biden looks to win US Elections.
13. Reliance has turned around, up more than Rs 100 from recent low.
14. SBI seems to be going for rerating, SBI was up more than 5%.
15. Markets all over the world are moving higher.
16. For the last few months, people who were in sidelines due to US Election uncertainty, seems to be pumping in money to buy shares.
17. If that continues here (Remember, still lot of money has to come to India due to MSCI rebalancing and possible Stimulus in US), we may head to 12400-12500.
18. Since few severe corrections came when we crossed 12K, now the next severe correction may come around 12400-12500 levels.
19. Yesterday I cut all my Call options and kept only Put options.
20. As I mentioned in my blog yesterday, Sold Put Options 11500 and below.
21. Still the premiums are very good, even after 15% crash in VIX in last two days.
22. ITC has recovered more than Rs 10 from recent low.
23. Today ITC, Voltas, Ashok Leyland, Bosch, Cipla, Glenmark, MRF are some of the key companies set to declare results.
24. So the stock specific action will continue.
25. Neeta Ambani was seen at IPL, so that may be a positive news for Reliance.
26. IndusInd Bank is up more than Rs 120 in last few days.
27. With SBI, Kotak Bank, ICICI Bank, IndusInd Bank doing so well after the results, Bank Nifty may not fall much from here.
28. Expecting DIIs to aggressively and that will give intraday dips.
29. Every intraday dip is a buying opportunity now.
30. Nifty future may trade between 12020 and 12220.