Pre Market Report, Jan 28, 2021 | Stocks and Commodities

 Jan 28, 2021

Time: 8 am

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Pre Market Report:

1. US markets closed significantly lower.
2. Let me post a detailed video why US markets sold off.
3. But our markets hugely under performed in last two days.
4. For the Year 2021, we have turned negative.
5.  Monday morning, Nifty was around 14500, Wednesday afternoon, it was 13960.
6. That is severe fall of more than 500 points.
7. Bank Nifty performed even worse.
8. Bank Nifty lost nearly 9% in few trading sessions.
9. Both FIIs and DIIs were net sellers in Cash market for last 3 trading sessions.
10. FIIs selling aggressively in F&O also.
11. So it the lack of buyers that drives the markets so fast on the downside.
12. Usually when markets fall in the last week of expiry, expiry will be at the lowest point.
13. In case if there is any aggressive buy order from DIIs in the last one hour things may be different.
14. Fed maintained status quo, still that did not help the bulls.
15. Apple, Facebook both declared good results but the share prices fell in after market trades.
16. Tesla results were below estimates and the share is down by more than 5% in after market trades.
17. So the trouble may continue for US markets even today.
18. Taking this clue, Asian markets are down, European futures are lower.
19. SGX Nifty is down by about 80 points, but it hit a low of 13801.
20. Axis Bank results were below estimates while HUL and Bank of Baroda came with better results.
21. Yesterday all sectoral indices fell except FMCG.
22. So we need to see how FMCG performs today.
23. FIIs have sold Call options aggressively, bought Put options and shorted Futures.
24. So the upside may be limited.
25. Yesterday Nifty 14000CE closed around Rs 60.
26. So Nifty will face stiff resistance around 14060.
27. Nifty 14100 and 14200CEs are written heavily.
28. Smart money also sold 14000CE and PE hoping to make some money.
29. If markets move violently on the downside, these people will take short position as hedge and tat will drive the market even lower.
30. Nifty future may trade between 13800 and 14060.