Pre Market Report, March 08, 2021 | Stocks and Commodities

 March 08, 2021

Time: 8 am

Pre Market Report:

1. US markets closed higher on back of strong jobs data.
2. Asian markets are higher.
3. Over the weekend, Export-Import data from China came very good.
4. SGX Nifty indicating more than 120 points gap up.
5. Thursday, it was 200 points gap down, Friday also 200 points gap down, now gap up.
6. The volatility continues and Option prremiums are so high.
7. On Friday Nifty 14000PE (Weekly Expiry), which is considered as very good support, was trading around Rs 20.
8. Considering there are only 3 trading sessions for this week expiry, this premium is very high.
9. February expiry Nifty closed at 15100.
10. After 7 sessions, today Nifty is likely to be around the same level.
11. But in between, there was huge volatility.
12. Nifty moved between 14450 to 15300.
13. Last time, Nifty 15000 had highest open interest and Nifty shot up to 15300.
14. This week also, it ooks the same.
15. It will be interestuing to see what happens in next few days for these sellers.
16. But this time writers will have enough time to adjust, last time this has happened on Wednesday, they had very little time to react.
17. Moreover, this time, there was huge selling by both FIIs and DIIs.
18. So people may expect some selling of consolidation after this gap up.
19. Remember FIIs have sold for more than Rs 2000 crores on Friday while DIIs have sold for more than Rs 1000 crore.
20. Banking stocks will be in focus.
21. Usually it will be Reliance and HDFC Twins that make Nifty move big on either side.
22. SBI broke recent low of 385 and tested 379 but recovered.
23. So that will be an interesting stock to watch.
24. After a good rally from October to February, March looks like a consolidation month.
25. But Option premiums do not indicate that.
26. Even on Friday, Nifty 15000 straddle was trading at  premium of Rs 730.
27. Means, people are expecting a move of more than 700 points in next three weeks.
28. India VIX is likely to go down as markets move higher.
29. If Nifty sustains above 15000, we can expect Nifty to revisit 15200-15300 in the next few days.
30. Nifty future may trade between 14980 and 15180.