Pre Market Report, March 30, 2021 | Stocks and Commodities

 March 30, 2021

Time: 8 am

Pre Market Report:

1. US markets closed mixed with DOW up and Nasdaq down.
2. But they were higher compared to morning opening.
3. Asian markets are mostly higher.
4. SGX Nifty is showing almost 180 points higher.
5. There is no reason for such a big gap up.
6. You may remember what happened when Nifty opened gap up 200 points two weeks before.
7. US 10 year bond yield above 1.7%, Crude is not down significantly even after Ever Given refloating, FIIs are still net sellers in Cash market.
8. Covid cases are also increasing.
9. But FIIs are bullish in F&O.
10. US markets are over valued.
11. That is why profit booking is expected at higher levels.
12. On Friday, Institutions have sold 20 billion worth of shares due to forced liquidation of Archego.
13. Even yesterday Banking stocks fell more than 3% in the morning but closed about 2% lower in US.
14. We need to see, if there is any other margin call from any other fund.
15. That is the immediate short term risk for markets.
16. But we are far from all time high.
17. So that kind of risk is very less for us.
18. But this kind of 180 to 200 points gap up, I am not convinced.
19. Usually rallies come after opening flat with some positive bias.
20. DIIs may not sell big, in order to keep NAVs higher at the FY end.
21. But for the last few weeks, markets have been highly volatile.
22. Auto and Cemment stocks will be in focus ahead of their monthly sales data.
23. HDFC Twins will also be in focus as FII selling is reduced.
24. Since we have only 3 trading sessions this week and only three days for this week expiry, more Calls are sold.
25. In case if markets sustain the 200 points gap up, then these people have to run for cover.
26. One can consider selling 14200PE with appropriate Stop Loss.
27. Nifty is likely to take good support around 14200 in April series.
28. India VIX is down by 9% on Friday, which is likely to go down further.
29. India VIX closed below 20 only on one trading session in 2021.
30. Nifty future is likely to trade between 14600 and 14880.