Pre Market Report, March 05, 2021 | Stocks and Commodities

 March 05, 2021

Time: 8 am

Pre Market Report:

1. US markets fell after Fed Chairman speech.
2. US 10 Year Bond yield shot up to 1.55%
3. Nasdaq is down by more than 10% from recent high.
4. That means, now Nasdaq is in correction territory.
5. A fall of more than 10% but less than 20% is considered as Correction.
6. A fall of more than 20% is considered as Bear market.
7. Gold fell below US$1700.
8. SGX Nifty opened around 14800.
9. Now it is trading above 14900.
10. Still it is a gap down of about 200 points.
11. Yesterday also Nifty opened gap down 200 points and then fell another 100 points to break SGX Nifty low, before recovering.
12. We have to see whether same happens today.
13. Yesterday, though Nifty fell, Midcap and Smallcap stocks did very well.
14. As usual Reliance and HDFC Twins move is enough to make Nifty move 100-200 points on either side.
15. Yesterday FIIs have bought Rs 13000 crore worth of Options.
16. Of this, about one third is Call options and remaining Put options.
17. This is one of the highest Option buy figures by FIIs.
18. But going by OI, more Puts are written than Calls.
19. There is a significant addition of OI at both Nifty 15000 PE and CE.
20. This means, people are taking short straddle at 15000.
21. In addition, there is a significant OI at 14500PE, 14000PE, 13500PE among Puts and 15500CE, 16000CE among Calls.
22. So first support is at 14500, second support is at 14000. First resistance is at 15500 and second resistance is at 16000.
23. But between 14500 and 15500, markets can be highly volatile.
24. We have only 13 more trading sessions, ATM straddles are traing at Rs 700 points premium.
25. That is a huge premium, people who short these will make money, if VIX goes down in the next few days.
26. Nifty future may trade between 14800 and 15100.