Pre Market Report, December 30, 2020 | Stocks and Commodities

 December 30, 2020

Time: 8 am

Pre Market Report:

1. US markets closed slightly lower due to profit booking.
2. Asian markets are mixed.
3. Most markets are already on holiday mood.
4. But in India, FIIs are not in holiday mood.
5. Dollar index below 90 again.
6. Euro at 30 month high.
7. SGX Nifty around 13980.
8. Bank Nifty fell more than 1500 points last Monday and after that it is up by 2400 points.
9. Bank Nifty looking more bullish.
10. Yesterday, out of top 5 stocks, 3 stocks are from Banking Sector.
11. As usual, Reliance is the main drag.
12. Stuggling to trade firmly above 2000.
13. Now Bank Nifty has broken out and technically most banks are very bullish.
14. FIIs have bought for more than Rs 2500 crores in Cash market.
15. That is really surprising, considering the fact that usually last week of December most FIIs become inactive.
16. Now we are within striking distance from 14K.
17. However DII profit booking was very visible yesterday.
18. Bank Nifty fell about 300 points intraday yesterday but recovered.
19. Any intraday fall is still a buying opportunity.
20. Yesterday when markets fell, I took some long positions.
21. I sold Bank Nifty 30000, 30200, 30500, 30800PEs.
22. Still Option premiums are very attractive.
23. Due to sudden fall last Monday, people are scared to sell PEs.
24. Nifty 13500PE was trading around Rs 10 yesterday.
25. Markets may open higher, Nifty is likely to kiss 14K and then there may be some profit booking by DIIs.
26. If you are a high risk taker, you can sell Nifty 13800PE and Bank Nifty 31000PE.
27. Even 30800PE closed around Rs 70 yesterday.
28. I do not think Bank Nifty will fall more than 300-400 points even if there is DII selling.
29. So Bank Nifty support may be around 31K.
30. Nifty future may trade between 13880 and 14020.