December 14, 2020
Time: 8 am
Pre Market Report:
- US futures are higher.
- Asian markets are mostly positive.
- SGX Nifty is trading around 13580.
- US rolls out Vaccine program. Trump announced that it will be free for all US residents.
- On Friday, FIIs have bought for Rs 4500 crores in CAsh market.
- Both these are having effect in SGX Nifty.
- SGX Nifty is trading close to all time high.
- On Friday, Nifty fell 180 points intraday mainly due to DII profit booking and traders profit booking due to weekend.
- I have been mentioning that any fall of more than 100 points in Nifty is a buying opportunity, one can sell 13000PE and below.
- Even on Friday Nifty 13000PE traded around Rs 75 but closed almost flat.
- On Friday, Nifty future has lost about 40 points premium over spot and Bank Nifty future has lost nearly 100 points premium.
- Remember just a week before Nifty future was trading at 70 points premium to spot.
- Now is is just about 10 points.
- If this is due to huge profit booking, then markets should consolidate.
- If this is due to shorting, then sooner or later short covering will take place.
- On Friday, energy sector did very well but Reliance has failed to perform due to profit booking.
- FIIs are still holding 77% long and 23% shrt.
- HDFC Bank has been under performing.
- Bank Nifty will touch 31K the day when HDFC Bank starts moving higher.
- It is down nearly 70 rupees in this month alone.
- That alone wiped out more than 300 points from Bank Nifty.
- Even at this peak, top 2 stocks, Reliance and HDFC Bank, are not performing.
- But broader markets are doing very well.
- Every day one or the other sector doing extremely well.
- IIP data, US VAccine program, FII buying in Cash market all add to positivity.
- Today WPI Inflation and CPI Inflation data will be out.
- But they are not expected to be very good.
- ANyway that is a non event for markets.
- The fight between FIIs and DIIs likely to continue.
- Nifty future may trade between 13460 and 13620.
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