Pre Market Report, Feb 05, 2021 | Stocks and Commodities

 Feb 05, 2021

Time: 8 am

Pre Market report:

1. US markets closed higher.
2. Asian markets are positive.
3. SGX Nifty is up by about 50 points.
4. Now it is trading slightly higher than yesterday's high.
5. Finally GameStop game is ending.
6. Share price has come down from US$450 to US$50.
7. Coming back to our marekts, our markets closed at all time high again.
8. But Nifty future as well as Bank Nifty future premiums have come down.
9. Now both are trading slightly discount to their corresponding spot prices.
10. So that shows this is a profit booking area.
11. We are very close to 15K which is double from March lows.
12. So Nifty 15K is a psychological resistance.
13. So we may consolidate between 14700 and 15000 for few days.
14. Today RBI policy is an important event.
15. But one good thing is that the policy announcement will be at 10 am.
16. RBI is expected to maintain status quo.
17. So policy announcement may not be important.
18. After the policy, the comment by RBI Governor will be more important.
19. Anyway Bank Nifty has shot up more than 5000 points in 4 days.
20. At best Bank Nifty may consolidate or fall a bit.
21. Option premiums are just too high for Bank Nifty.
22. Yesterday I sold Bank Nifty 33000PE around Rs 90 for Feb 11 expiry.
23. Everyday Bank Nifty has to fall an average of 500 points to reach 33K by next Thursday.
24. Two days, gap up, it was sold into, but recovered more to close much higher.
25. Today also gap up, but markets may not be sold into quickly due to RBI policy but after RBI policy or towards the end of the day, there may be some selling.
26. I am expecting some selling in last one hour of trading.
27. Traders will like to book profits ahead of weekend as they are sitting with huge profits.
28. Last Friday I bought Sun TV at Rs 480, this Friday it is Rs 550.
29. Same goes with SBIN, Bank of Baroda, ITC and many other stocks.
30. Nifty future may trade between 14820 and 15020.