Pre Market Report, Feb 18, 2021 | Stocks and Commodities

 Feb 18, 2021

Time: 8 am

Pre Market Report:

1. US markets closed moxed.
2. Asian markets are mostly negative.
3. China opens after a week of Chinese New Year Holidays.
4. SGX Nifty is up about 50 points.
5. Yesterday there was good amount of shorting in Nifty futures.
6. Nifty future closed almost 20 points discount to spot Nifty.
7. There are some restrictions announced by RBI for Housing Finance Companies.
8. HDFC fell yesterday.
9. Both HDFC and HDFC Bank together contributed to 50% of the fall yesterday.
10. IT sector is still under profit booking and now significantly lower from Jan peak levels.
11. But Reliance has supported the markets yesterday.
12. Worldwide, markets are consolidating with negative bias, after a stellar run in last 4 months.
13. Markets are likely to be volatile.
14. Yesterday Bank Nifty fell 400 points, then shot up 600 points, then fell 600 points, ets.
15. Bank Nifty is not falling much due to support from PSU Banks.
16. PSU Banks are looking too bullish, PSU Bank index was up 6% yesterday.
17. Huge OI added at 15300, 15400, 15500CEs.
18. On downside, only 15000PE added more in OI.
19. But Bank Nifty picture is better than Nifty.
20. Bank Nifty 36500PE and 36000PE added huge OI.
21. Though 37000CE added more in OI, 37000 straddle is having highest OI while Nifty straddle shifted from 15300 to 15200.
22. So Bank Nifty is looking slightly bullish than Nifty.
23. HDFC Twins and Reliance will be in focus as they contribute most for Nifty as well as Bank Nifty.
24. As usual we can expect huge volatility in Bank Nifty.
25. PSU Banks will also be in focus.
26. Dollar Index is inching higher, noise about interest rate is loud now.
27. But people just need a reason to book profit or short sell.
28. But long term looks bullish for our markets.
29. Expect volatility due to weekly expiry.
30. Nifty future may trade between 15180 and 15320.