Pre Market Report, January 5, 2021 | Stocks and Commodities

 January 5, 2021

Time: 8 am

Pre Market Report:

1. US markets closed lower.
2. Asian markets are also lower.
3. SGX Nifty is down by more than 100 points.
4. New Corona Virus and Senate Election for two seats are the reasons for huge profit booking.
5. I came out with YouTube video few weeks before regarding Senate Election.
6. Recent opinion poll shows Democrates winning both the seats.
7. Some people predict 6 to 10% correction for US markets.
8. Markets all over the world are trading near all time high.
9. So any negative news, markets can fall 5 to 10%.
10. Here in India, IT stocks did very well.
11. Most IT stocks hit fresh all time high.
12. Metal index was up 5% yesterday.
13. Though Nifty fell 200 points intraday, entire loss was recovered to close at higest point of the day.
14. Usually that is a bullish sign.
15. But since US markets fell, SGX Nifty indicating about 100 points gap down.
16. Bank Nifty future closed more than 150 points premium to spot price.
17. Midcaps and small caps out performed.
18. Banking is the only sector that closed flat.
19. FIIs are net buyers for about Rs 1800 crores.
20. Their buying continues for the fourth straight month.
21. Reliance is struggling to close above Rs 2000.
22. Reliance, HDFC Bank HDFC, Kotak Bank under performed, which contributes about 35% of the Nifty.
23. India VIX was up after coming down the day before.
24. For next few days, markets are likely to be volatile.
25. Next week will belong to IT stocks.
26. DII selling is less than half of FII buying.
27. So market downside may be limited.
28. Markets may be volatile between 13800 and 14200.
29. Clear direction may emerge after corporate results.
30. Nifty future may trade between 13980 and 14180.