Pre Market Report, March 04, 2021 | Stocks and Commodities

 March 04, 2021

Time: 8 am

Pre Market Report:

1. US markets fell on the back of rising bond yield.
2. Ten year bond yield shot up from 1.14% to 1.49%.
3. Now Nasdaq is below 13K.
4. When our markets closed, Dow Future was up more than 200 points.
5. Now it is down more than 100 points.
6. So SGX Nifty is showing a gap down of about 200 points.
7. This is a huge gap down considering weekly expiry.
8. Yesterday morning Nifty 15000CE had the highest open interest among Call options.
9. By making a huge move on upside, markets gave huge losses to those CE sellers.
10. Now it is a big gap down, will give huge loss to PE writers.
11. But SGX Nifty may not be a correct indication.
12. Surprisingly both FIIs and DIIs were net buyers in CAsh market.
13. FIIs have bought for another Rs 2000 crore plus.
14. Markets were stabilisng between 15100 and 15200 but late surge in Reliance took Nifty above 15200.
15. Last week expiry Nifty future was at 15170, it went below 14500 and then shot up to 15300.
16. That is a huge swing of 1500 points in just 4 days.
17. Today we need to watch Reliance and HDFC Twins.
18. HDFC Bank ADR was down yesterday night in US.
19. Bank Nifty has been making more than 1000 points move now a days.
20. Yesterday both Nifty Future and Bank Nifty Future closed at significant premium to spot prices.
21. That may come down now due to huge gap down.
22. India VIX fell for 3 days in a row, today we can expect that to shoot up.
23. Far OTM options are trading at huge premiums due to new SEBI guidline of less intraday limits.
24. Put option prices (Far OTM) increases when market goes up.
25. That is throwing a good opportunity for Institutions with lots of money.
26. Nifty future may trade between 15000 and 15300.