Pre Market Report, March 25, 2021 | Stocks and Commodities

 March 25, 2021

Time: 7.45 am

Pre Market Report:

1. US markets closed in red.
2. Dow was 300 points higher in the morning session but at closing all gains wiped out.
3. Nasdaq is down by more than 2%.
4. US markets are clearly not comfortable with high valuation of technology stocks.
5. Asian markets are mixed.
6. Coming back to our markets, things are not looking good.
7. First time, FIIs have sold for nearly Rs 2000 crores in Cash market.
8. Bank Nifty fell more than 1000 points.
9. Right now SGX Nifty is trading below 14500.
10. Usually, in this kind of markets, expiry will happen somewhere close to the monthly low.
11. So far, on daily chart, closing low was 14530. In fact, yesterday also, closing low was 14530. (Due to weighted average, it is showing 14549).
12. If markets are not turning around today, though the possibility is very low, markets may expire at fresh closing low.
13. Next important level to watch, intraday low of 14350.
14. For one or the other reasons, if markets open positive and sustains the positivity, then 14530 will become double bottom.
15. So today, first half an hour of trade is very important.
16. No boubt, things look very bearish, sometimes short sellers will like to book profits when everything looks bearish.
17. For that to happen, DIIs must place good buy order at the opwening.
18. With many blue chip stocks correcting between 10% and 20%, this may be a good time for long term investors.
19. If Nifty breaks 14500, I am planning to sell April Call options from 15200 to 15500.
20. Nifty 14700CE added huge OI for today expiry.
21. So as long as Nifty is trading below 14700, it will be bearish.
22. While writing the blog, SGX Nifty up from 14499 to 14577.
23. Asia is offering good support.
24. Yesterday Markets made a big move.
25. Usually when markets make a huge move on day before expiry, expiry day Nifty trades plus or minus 100 points only.
26. Going by that logic, Nifty should trade between 14450 and 14650.
27. Selling 14800CE with appropriate SL is a good idea.
28. HDFC Bank was relatively out performer yesterday.
29. So we need to watch Reliance, HDFC Twins for market direction.
30. Nifty future may trade between 14450 and 14680