Pre Market Report, Jan 13, 2021 | Stocks and Commodities

 Jan 13, 2021

Time: 8 am

Pre Market Report:

1. US markets closed marginally higher.
2. Asian markets are mixed.
3. SGX Nifty is slightly higher.
4. Remember yesterday, FIIs bought only for Rs 571 crores.
5. But DIIs have sold for Rs 1334 crores.
6. FIIs are unwinding some long positions in F&O also.
7. Earlier FIIs long in Index Futures was above 80% and it is now about 76%.
8. World markets are also consolidating.
9. So by looking at all these, I feel it is time for markets to consolidate.
10. But stock specific actions may continue.
11. Banks and Reliance have out perfored yesterday.
12. For the last 3 months, markets made significant move in the first two week of the series.
13. This time also, same has happened.
14. Yesterday CPI Inflation data came below 5%.
15. That is well within RBI target range of 2 to 6%.
16. PSU Banks have done very well, PSU Bank Index was up 6%.
17. But India VIX keep moving higher.
18. Even when US VIX comes down, India VIX is not coming down.
19. That indicates, we may not consolidate as other Global markets.
20. So we have confused signals.
21. At least today, VIX should come down.
22. Yesterday, there was huge OI added at 14500PE.
23. So next two days, we can expect 14500 as support.
24. Max Pain is also at 14500.
25. SGX Nifty is showing a gap up of about 40 points.
26. But that gap up may be sold into initially.
27. People may like to book profits on their long positions as FIIs buying is much less, FIIs also unwinding, also markets are at all time high.
28. So we can expect some intraday volatility.
29. Usually Wednesday's trade are highly volatile.
30. Nifty future may trade between 14520 and 14680.
31. Infosys and WIPRO will be in focus ahead of their results.