Pre Market Report, Feb 12, 2021 | Stocks and Commodities

 Feb 12, 2021

Time: 8 am

Pre Market Report:

1. US markets ended mixed.
2. Asian markets are trading with negative bias.
3. Markets all over the world are consolidating at higher levels.
4. SGX Nifty is down slightly by 10 to 15 points.
5. Tension eased at Indo China border is a big positive news.
6. Reliance has broken out of 1850-2000 trading range is another good news for bulls.
7. India VIX fell after a long time, by about 4%.
8. Bank Nifty has been very volatile between 35500 and 36600.
9. As long as 36600 is not crossed, I will not be bullish in Bank Nifty.
10. Since Banks have run up already, now sectoral rotation may happen.
11. Other sectors may pick up like Energy, Auto, etc.
12. Both Banks and IT have run up in last 6 weeks.
13. Since Reliance is breaking out after a long consolidation, it has potential to go much higher, may be 2200 to 2400 in next few weeks.
14. With all important events are out, like budget, RBI policy, US Stimulus, etc, now markets are waiting for some trigger.
15. Until such new trigger comes, markets may consolidate with high volatility.
16. FIIs continue to buy and they have bought Rs 250 crore more than what DIIs have sold.
17. Due to fall in India VIX and nature of consolidation, people are selling Nifty 15000PE and 15200CE in weekly options.
18. Some people are doing 15100 straddle.
19. If markets make any big move, these people have to run for cover.
20. Option premiums have fallen, Nifty was up only 65 points but ATM Puts fell by Rs 60.
21. Nifty closed flat on Tuesday and Wednesday.
22. Yesterday also, it was just because of Reliance, Nifty was up 65 points.
23. If Reliance was flat, then Nifty would have closed only 5 points higher.
24. Today evening we will get IIP and CPI Inflation data.
25. We may consolidate for some more time between 15000 and 15250.
26. Keep watching HDFC Bank, if that starts moving higher, Bank Nifty can out perform.
27. ITC will be in focus after its results.
28. Results seems to be better than expected, anyway no one is expecting good results from ITC.
29. Due to Pandemic, their Hotel Business would have done very badly.
30. Nifty future may trade between 15080 and 15260.