Pre Market Report, December 4, 2020 | Stocks and Commodities

 

 December 4, 2020

Time: 8 am

Pre Market Report:

1. US markets closed mixed with Dow and Nasdaq ip and S&P 500 down slightly.
2. This week markets consolidated as expected.
3. Though markets were volatile, Nifty closed between 13100 and 13150 in all days.
4. But what was so surprising yesterday, though Nifty closed at 13140, Nifty future closed above 13200.
5. There was a huge premium of 70 points for Nifty future.
6. Yesterday HDFC Bank fell as RBI restrained HDFC Bank from issuing further Credit cards and launching digital programs.
7. HDFC Bank alone dragged Nifty down by more than 25 points and Bank Nifty by more than 250 points.
8. If not, yesterday itself Nifty would have crossed 13200.
9. Auto stocks have done very well.
10. Maruti was up more than 7%.
11. Metals and PSU Banks also doing well.
12. PSU Bank index was up by 5%.
13. Negotiations are going on to sell some of Anil AMbani Group companies, if sold, sale proceeds will be used to pay the laons.
14. PSU Banks have lent money to ADAG Group.
15. That is the reason for bullishness in PSU Bank pack.
16. Today they event is RBI policy.
17. But from market perspective, it is a non event.
18. Usually ahead of events, Volatility will spike and hence both Call and Put premiums.
19. But yesterday Volatility came down and even Bank Nifty 30000 Put and Call options lost nearly Rs 200 premium.
20. That clearly indicates RBI policy is a non event.
21. But anyway markets may be slightly nervous for first one hour.
22. RBI policy is at 10 am, so markets volatilty may last for one hour.
23. We need to see if there is a follow up selling in HDFC Bank.
24. FIIs once again bought shares for more than Rs 3000 crores.
25. Since HDFC Bank is FII heavy counter, it may stabilise, may not fall much from here.
26. In US also, HDFC Bank ADR is down by more than 2%.
27. Bank Nifty has been consolidating between 29000 and 30200, with huge volatility.
28. Breaking this range is the indication to take long or short positions.
29. Asian markets are mixed but SGX Nifty is higher by 40 points.
30. Nifty future may trade between 13080 and 13280. There may be a sharp move towards the end of the day, on either side.