Pre Market Report, Jan 25, 2020 | Stocks and Commodities

 Jan 25, 2020

Time: 8 am

Pre Market Report:

1. US markets ended mixed.
2. Asian markets are mostly higher.
3. SGX Nifty is up more than 100 points.
4. On Friday, we fell more than other markets.
5. Also, after a long time, both FIIs and DIIs were on the sell side in Cash market.
6. FIIs have for Rs 636 crores and DIIs have sold for Rs 1290 crores.
7. That was the main reason for our huge under performance.
8. Reliance, L&T, Kotak Bank all fell ahead of their results.
9. Reliance came with decent results on Friday.
10. It is expected to open 1 to 2% higher today.
11. That is likely to support the markets today.
12. But its price can be volatile in the morning.
13. Kotak Bank results are expected during market hours.
14. Not only Kotak Bank, all banking stocks came under severe selling pressure on Friday.
15. Bank Nifty future fell 1800 points from Thursday's high to Friday's low.
16. That is a over reaction, that too without any bad news.
17. India VIX shot up in last two days.
18. There are only 3 more trading sessions for this series.
19. Still Nifty 14000PE is trading above Rs 30.
20. That is a huge premium.
21. Today we can expect India VIX to go down and hence the premium.
22. Nifty 14000PE has the highest open interest.
23. So Nifty is not likely to expire below 14K.
24. In fact Call premiums are higher.
25. Say, for example, Reliance 2050CE is trading at a higher premium than 2050PE, when Reliance is trading below 2050.
26. Reliance, JSW Steel will be in focus after their results.
27. L&T, Kotak Bank and PSU Banks will be in focus ahead of L&T, Kotak Bank and Bank of Baroda results.
28. Over the weekend, UltraTech came with good results, so old economy stocks like Autos, Cement, Tyre, Steel stocks will be in focus.
29. FIIs & DIIs have sold in CAsh market, FIIs sold in Index Futures, Stock Futures.
30. If the gap up is sustained, then at some point there will be further short covering.
31. Nifty future may trade between 14380 and 14540.