Pre Market report, December 1, 2020 | Stocks and Commodities

 December 1, 2020

Time: 8 am

Pre Market Report:

1. US markets closed lower.
2. But recovered some losses intraday.
3. Though markets fell, S&P 500 VIX did not go up.
4. So it is just a profit booking after a stellar rally.
5. This is not a sign of trend reversal.
6. Asian markets are generally higher.
7. Manufacturing PMI data from China is positive.
8. Today and tomorrow, we will get Manufacturing PMI data from other countries.
9. SGX Nifty fell more than 250 points from Friday night high to Monday low.
10. But recovered and now trading almost flat.
11. FIIs bought for more than Rs 7000 crores on Friday.
12. Now MSCI Rebalancing is over.
13. Markets may consolidate now.
14. Markets may consolidate with negative bias.
15. As long as Nifty is not crossing 13200, I will assume that market will consolidate.
16. Going forward, FIIs may not buy aggressively as they have done in October and November.
17. DIIs also may not sell as aggressively as they have done in last two months.
18. That may bring intraday volatility lower.
19. GDP data was better than expected and it is a non event for markets.
20. With Rupee trading at less than 74 and Dollar Index less than 92, more companies announcing Corona Vaccine, Expected Stimulus from US, there is no reason for major correction now.
21. Reliance is struggling to cross 2000.
22. FIIs have pumped in Rs 65K crore in November.
23. That is highest monthly inflow by FIIs.
24. Auto stocks will be in Focus as companies will declare monthly sales data.
25. In last month rally, Auto stocks did not move much.
26. FIIs seems to be heavily long in F&O.
27. That is the only concern. In case, if there is any bad news, markets may fall significantly due to unwinding of these longs.
28. Manufacturing PMI data may be a good one today as Manufacturing was positive in GDP data.
29. Due to SEBI rules on Peak Margin, the volume may be lower today and that can add volatility.
30. Nifty future may trade between 12880 and 13080.