Pre Market Report, Feb 08, 2021 | Stocks and Commodities

 Feb 08, 2021

Time: 8 am

Pre Market Report:

1. US markets closed higher on Friday.
2. They moved higher despite not so good jobs data.
3. Over the weekend, US passed Stimulus Bill of US1.9 Trillion.
4. That is having some positive impact in Asia.
5. Most of the Asian markets are higher.
6. SGX Nifty indicating about 80 points gap up.
7. More significantly, it indicates opening higher than yesterday's high.
8. On Friday, huge gap in Bank Nifty was due to SBI.
9. SBI hit upper circuit, once released from circuit, shot up another 5%.
10. But profit booking at higher levles by DIIs brought Bank Nifty down more than 1000 points from intraday high.
11. But that was expected as Put premiums did not come down in the mornning while Call premiums shot up.
12. Auto and IT sectors doing very badly in last one week.
13. Even Reliance is not able to cross Rs 2000, it is down by more than 20% from recent high and hence it is in bear territory.
14. So meaningful rally from here on depends on IT, Auto, Reliance, etc.
15. If these stocks are not participating in the rally, then markets may go for consolidation.
16. Since Nifty is around 15K, a psychological resistance, markets may spend some time around this level.
17. Markets may resume the rally after one or two days of consolidation.
18. It all depends on Global cues and corporate results.
19. About 20% of Nifty 50 stocks will declare results this week.
20. ITC is one ke stock set to declare results this week.
21. On Friday, FIIs bought is Cash market but DIIs sold equivalent amount.
22. So the same game is likely to play today also.
23. Looking at Open Interest, Nifty will have a very strong support only at 14000.
24. Nifty 14000PE is trading almost 3X more than Nifty 16000CE.
25. So upside is limited but not downside.
26. Buut most of the time, this assumption will go wrong.
27. Since markets shot up from 13600 to 15000 in 5 days, people are expecting some kind of selling, at least intraday, that is why Put option buyers are paying such a huge premium.
28. Bank Nifty 33000PE expiring on Feb 11 (Only 4 days and 3000 points away) was trading around Rs 80 on Friday.
29. So be ready for life after 15K.
30. Nifty future may trade between 14920 and 15120