Pre Market Report, Feb 09, 2021 | Stocks and Commodities

 Feb 09, 2021

Time: 8 am

Pre Market Report:

1. US markets closed at another record high.
2. Corona Vaccination, US$1.9 trillion Stimulus, good corporate results, all working in favour of bulls.
3. But Asian markets are mixed.
4. Coming to our markets, Dream Run continues.
5. Nifty is up another 200 points.
6. From 13600 to 15150 in 6 trading sessions.
7. Bank Nifty from 30000 to 36000 in te same period.
8. Yesterday it was Auto, IT, Reliance that helped markets to move higher.
9. Yesterday, it was a broad based rally.
10. Large cap, mid cap, small cap all did very well.
11. That is surprising at a time when everyone though markets are trading at resistance zone.
12. Brent crude crossed US$60.
13. That is not really very good for India.
14. That will result in incresed price of pertoleum products and price rise of commodities due to higher transportation cost, contributing to Inflation and hence interest rates.
15. But anyway, long term outlook for Crude is bearish.
16. Markets keep moving higher and India VIX also keep moving higher.
17. Markets need to correct a bit or consolidate for India VIX to go down.
18. So far corporate results are good.
19. So stock specific actions will continue.
20. FIIs buying more, DIIs selling less is a good news for bulls.
21. But Open Interest data suggests consolidation for Bank Nifty.
22. Bank Nifty 36000 straddle added huge open interest in both weekly and monthly options.
23. Also Bank Nifty fell after testing 36500, two days, yesterday as well as day before yesterday.
24. So a section of market participants think Bank Nifty may go for consolidation, may trade between 35000 and 37000 and hence selling both 36000 Call and Put options.
25. Due to higher volatility, even Weekly straddles are trading at more than Rs 1000.
26. One year before, even monthly options did not trade in that price.
27. If markets consolidate, then these people will make very good profits.
28. Kotak Bank fell Rs 75 after hitting all time high yesterday. So that stock will be in focus, if markets trade firmly in Green today.
29. SBI is consolidating after huge run, Option strikes up to 450 opened. There are lot of activities from 400CE to 450CE.
30. Nifty future may trade between 15020 and 15220.