November 9, 2020
Time: 7.45 am
Pre Market Report:
- Joe Biden has won the US Election (Though Trump has not agreed).
- Asian markets are higher.
- US & European Futures are higher.
- SGX Nifty hit a high of 12450 plus.
- That is above All Time High of Nifty 12430.
- Looks like early Diwali for bulls.
- I will come out with a video about impact of Joe Biden's presidency for India and Indian markets.
- We are likely to open above 12400 today.
- There will be some panic short covering and then markets may cool off.
- DIIs will surely sell by big numbers today.
- So there will be at least one intraday minor correction.
- Even on Friday, when FIIs pumped in more than Rs 4000 crores, Bank Nifty, at one point, fell from 26850 to 26500.
- That is a decent fall of 350 points, but quickly recovered almost entire losses.
- Now the only headwind is Corona.
- That too is a big problem only in Europe and US right now.
- Asia is doing very well in controlling the Virus.
- There will be one more leg of this rally, if there is any meaningful improvement in Corona Vaccine.
- For the time being, Nifty may trade between 12200 and 12600.
- Nifty is around all time high but Bank Nifty is still 5000 points away from all time high.
- If the momentum continues, Banking stocks are likely to do well.
- Bihar election exit poll shows RJD-Congress may win the election.
- But Bihar elections may be a non event for markets.
- With strong Global cues, FIIs strong flow, Bihar news will be ignored.
- It is time to focus on value stocks now.
- Stocks like ITC, PFC, REC, IOC, Coal India may be good bets as downside risk will be very less.
- But upside may not be fantastic but risk is very less.
- In October series also, Nifty shot up 1200 in first two weeks.
- Next three weeks, markets consolidated.
- With this gap up, Nifty is up by more than 900 points and markets may peak out around Diwali.
- And then for next two weeks markets may consolidate.
- Nifty future may trade between 12320 and 12480.
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