Pre Market Report, Feb 26, 2021 | Stocks and Commodities

 Feb 26, 2021

Time: 8 am

Pre Market Report:

1. US markets fell, worst fall since October 2020.
2. Asian markets are selling off.
3. SGX Nifty is down nearly 300 points.
4. US yield spiked to 1.6%.
5. Then came down to 1.52%.
6. Volatility index shot up nearly 50% in US and closed about 35% higher.
7. S&P 500 VIX traded above 30 but closed around 29.
8. Today we can expect huge spike in India VIX also.
9. Premiums are likely to shoot up.
10. Last year Feb end, Nifty ATM straddle for Dec expiry was trading around Rs 1500.
11. Now it is trading around Rs 2200.
12. Yesterday itself Bank Nifty fell about 650 points from intraday high.
13. It was Reliance which supported the Nifty.
14. FIIs are bullish in F&O.
15. They have more than 75% long positions.
16. Now with huge gap down, if they were to cover, then markets may fall even more.
17. Remember Nifty was trading around 14800 only on Wednesday.
18. It was FM announcement regarding PSU companies, that lifted Bank Nifty from 35000 to 37250.
19. As a result, Nifty also shot up to above 15100.
20. Now everything may be given up.
21. Bank of Baroda is trading around Rs 90, but announcing QIP at about 9% discount.
22. So that counter may come under selling pressure.
23. From today, intraday leverage will be only 1X for F&O players.
24. We will have to see how the volume is affected today.
25. Nifty future may trade between 14820 and 15000.