Pre Market Report, Feb 24, 2021 | Stocks and Commodities

 Feb 24, 2021

Time: 8 am

Pre Market report:

1. US markets once again ended mixed.
2. But they closed much higher from intraday low.
3. Dow almost recovered 400 points losses to close in Green.
4. Nasdaq also recovered about 450 points from intraday low.
5. Asian markets are mixed.
6. SGX Nifty trading above 14800.
7. That indicates a decent gap up of about 80 points.
8. But be assured, there will be lot of intraday volatility.
9. Even yesterday, markets were highly volatile.
10. Markets have corrected decently.
11. Many blue chip stocks have fallen more than 10%.
12. All these happened just in a normal course of profit booking.
13. Though interest rate increase was stated as a reason, I do not subsribe to that idea.
14. In the long run, higher interest means Economy is good and markets did very well in the past when interest rates were higher.
15. We have corrected more than other markets as we have out performed other markets in first two weeks.
16. Smart people have created 14800 short straddle day before yesterday, despite such a huge volatility, this strategy is likely to give very good profit.
17. FIIs have sold heavily.
18. But DIIs have turned net buyers.
19. Bank Nifty is looking very weak due to Kotak Bank.
20. Kotak Bank has fallen nearly 8% in last few days.
21. I have observed some smart people (including me) sold Nifty 14000PE in March series and sold Nifty 15000CE in current series.
22. Reason: Markets are bearish, so Nifty will face huge resistance around 15K but not too bearish to go below 14K.
23. That strategy has paid off very well.
24. Bank Nifty shot up 7500 points in first two weeks and now corrected about one third.
25. So Bank Nifty should take support around 35000.
26. Yesterday also it took support there.
27. Reliance, Kotak Bank will be in focus.
28. Wednesday volatility will be there ahead of tomorrow expiry.
29. Tata Consumer will be entering Nifty 50 and GAIL will be out.
30. Nifty future may trade between 14680 and 14880.