Pre Market Report, Jan 07, 2021 | Stocks and Commodities

 Jan 07, 2021

Time: 8 am

Pre Market Report:

1. US markets closed mixed.
2. When our markets closed, Dow Futures was up only 40, 50 points but Dow shot up more than 600 points.
3. Nasdaq was down more than 200 points when our markets closed, but traded positive during trading hours there.
4. Then news broke out that Republicans supporters stromed Capitol building and clashed with Police.
5. Then US markets gave up some of the gains, particularly Nasdaq.
6. S&P 500 VIX which was down 12% at some point, shot up again.
7. FAce book as well as Twitter suspended Trump's account temprorily.
8. But Asian markets are ignoring this bad incident and moving higher significantly.
9. SGX Nifty is trading higher than yesterday's high.
10. Yesterday Relinace dragged the markets.
11. With yesterday's fall, Reliance is almost 25% lower than its all time high.
12. But Banking stocks helped.
13. Bank Nifty seems to have broken out.
14. Next logical resistance will be previous all time, around 32500.
15. Yesterday, intraday, Bank Nifty fell 400 points.
16. But this kind of profit booking happens everytime.
17. Everytime, the selling is being arrested and markets resume their uptrend.
18. So the Primary trend is up.
19. IT stocks fell.
20. Usually if a stock is up significantly, just before results, profit booking happens.
21. That is what is happening with IT stocks now.
22. Next week, it is full of IT focus week as markets will be reacting to TCS, Infosys, WIPRO, HCL Tech results.
23. But one word of Caution.
24. Yesterday, for the first time, both FIIs and DIIs were net sellers in Cash market.
25. So we have to see their figures today.
26. Calls are written aggressively, that is not really good.
27. In case, if markets shoot up, theses Call writers will have to run for cover, propelling the markets even higher.
28. From 14200 to 15000CE, two Calls are written for every one Put written from 14200 to 13500PEs.
29. Last 3 months saw significant rise in markets in the first two weeks.
30. But this time, it is consolidating.
31. Nifty future may trade between 14180 and 14320.