Pre Market Report, Feb 17, 2021 | Stocks and Commodities

 Feb 17, 2021

Time: 8 am

Pre Market Report:

1. US markets ended mixed.
2. When our markets closed, Dow Futures was up 200 points.
3. But Dow closed just 65 points higher, due to profit booking.
4. Markets all over the world are trading at all time high, Bitcoin crossed US$50K, so it is natural that profit booking sets in.
5. When everything looks good, that is the time to book profit.
6. When everything looks bad, that is the time to close your short positions or that is the time to buy.
7. Yesterday morning Nifty future was at 15430, today morning SGX Nifty low 15209.
8. That is more than 200 points fall.
9. Bond yield rising in US is the reason for this fall.
10. Usually markets top out or bottom out with huge volatility.
11. I am seeing yesterday's volatility as topping out process.
12. For short term, 15430 will be the resistance.
13. Bank Nifty was just too volatile.
14. If you remember. last week also both Tuesday and Wednesday trades were highly volatile.
15. Going by historical observation, today also markets are likely to be hugely volatile.
16. SGX Nifty indicating a opening lower than yesterday's low confirms this.
17. Bank Nifty moving 1000 points is normal now a days.
18. Calls were wittern aggressively in both Nifty and Bank Nifty.
19. Markets may consolidate with huge volatility.
20. In US also, after falling below 20, VIX shot up next day.
21. Gold prices fell below US$1800.
22. That is an indication that interest rate on the rise and dollar index strenthening.
23. That is actually not good for emerging markets.
24. Reliance has supported the markets yesterday.
25. Now focus may turn to other sectors while profit booking continue in Banking stocks.
26. PSU Banks did well compared to Pvt Sector Banks yesterday.
27. But SBI did not do well.
28. For 2 consecutive days, DIIs have sold more than what FIIs have bought.
29. That adds to negative sentiment, on top of negative Global cues.
30. Nifty future may trade between 15180 and 15380.