Pre Market Report, December 7, 2020 | Stocks and Commodities

 December 7, 2020

Time: 8 am

Pre Market Report:

1. Asian markets are mixed.
2. SGX Nifty is down slightly.
3. On Friday, our markets hit fresh all time high.
4. Bank Nifty looks like breaking out.
5. Bank Nifty closed above 30K first time since March 2020.
6. RBI comments and PM Modi's Vaccine comments helped markets to close at all time high.
7. FIIs also keep pumping in money.
8. Nifty futures trading at a significant premium.
9. HDFC Bank was down last week due to RBI restriction on its digital products.
10. Otherwise, Bank Nifty would have crossed 31K.
11. Surprisingly Reliance was the top loser on Friday.
12. Reliance, HDFC Bank, the top 2 stcoks are down.
13. Yet markets are higher.
14. ICICI Bank ADR was up 5% on Friday in US.
15. Infy ADR was also up more than 3%.
16. Today markets may open lower by 30, 40 points due to Global cues.
17. What is more important is the closing.
18. Ametures open the market and professional close the market.
19. One goog thing is that India VIX is inching lower.
20. It is likely to break 18 on the down side.
21. Markets are likely to go for consolidation for next few weeks.
22. Autos and Metals are doing very well.
23. PSU Banks also doing very well.
24. Next leg of the rally will come when HDFC Bank and Reliance start moving higher.
25. That may not happen in December.
26. I will be selling Put options on every dip.
27. I prefer to sell Put options 12500PE and below.
28. Prefer to sell 12800PE in weekly options.
29. Bank Nifty, prefer to sell weekly Put options of 28500, 28800.
30. Nifty future may trade between 13200 and 13380.