Pre Market Report, December 09, 2020 | Stocks and Commodities

 December 09, 2020

Time: 8 am

Pre Market Report:

1. US markets closed in Green.
2. Asian markets are higher.
3. SGX Nifty is above 13450.
4. Earlier I said, markets are higher despite HDFC Bank, Kotak Bank, Reliance are down.
5. Yesterday Reliance moved higher and that supported the market.
6. Markets were flat yesterday but PSU Bank Index up 7%.
7. Some PSU Banks are up more than 15%.
8. If Reliance, HDFC Bank and Kotak Bank performs, we can expect one more leg for this rally.
9. But FIIs seems to be unwinding their long positions.
10. FIIs were 82% long few days before, now 75% long.
11. Even 75% long is a strong figure.
12. Nifty future shed some premium due to this long unwinding.
13. In very short term, markets are likely to consolidate.
14. Going by Option prices, Nifty is likely to consolidate between 13250 and 13550.
15. Huge OI added at 13400PE but among Calls, huge OI added at 13700.
16. I have sold 13300PE yesterday around Rs 50, hoping that it will go to zero.
17. What is surprisingis that India VIX is not coming dow.
18. FIIs as usual bought heavily for Rs 2909 crores.
19. DIIs are equally aggressively selling.
20. But only intraday fall comes, no positional loss.
21. Must watch HDFC Bank, there seems to be shorts in that.
22. If there is any short covering, Bank Nifty can touch 32K.
23. Taking bullish view, I sold Bank Nifty Put Options at 29000, 28000, 27000.
24. Even in weekly Options, I sold 29500PE.
25. Nasdaq is up for 10th straight day.
26. Global cues are so strong, we are likely to open at yesterday's high.
27. Time to be Cautious on the upside when everything looks good.
28. However, on every intraday dip, I am selling Nifty 13000PE.
29. Even if markets correct, I do not expect Nifty to fall below 13000.
30. Nifty future may trade between 13360 and 13520.