April 05, 2021
Time: 8 am
Pre Market Report:
- Dow futures up 200 points due to strong US Jobs data.
- Many Asian markets are closed.
- SGX Nifty hit a high of 15020 but corrected.
- US DOllar is likely to strengthen.
- That could be one reason why SGX Nifty is lower.
- Since many markets are closed today, volume could be very low.
- That can also be a reason.Nifty moved more than 170 points and
- There was no much Institutional activity in Cash market on Thursday.
- Now the focus will turn to RBI Policy.
- RBI policy is on Wednesday.
- RBI is expected to maintain the status quo.
- But RBI Governor's comment about the Economy will be watched keenly.
- On one side, we have better Economic data like highest ever GST collection, on the other side Corona Virus resurgance is a negative.
- Nifty moved more than 170 points and Bank NIfty more than 500 points without any Institutional participation in Cash market.
- That makes us to believe that Thursday's rally was due to short covering.
- We need fresh triggers to move higher.
- But right now corona virus induced restrictions will be seen as a short term negative.
- But speculative positions will be added in both Banking stocks (due to RBI policy) and IT Stocks (due to dollar strength and results next week)
- Most IT stocks are trading near all time high.
- But still people expect good results from IT companies.
- There was some unwinding in Index Futures despite markets making big moves in last few days.
- So we can expect some consolidation for next few days between 14800 and 15200.
- Global cues will support the markets at lower levels.
- Though markets have been volatile, for the last 5 weeks, markets are in consolidation mode only.
- February expiry was around 15100.
- Now 5 weeks are over, we are into the 6 th week.
- Nifty future moving between 14260 and 15450.
- In consolidation markets, straddles work very well.
- Falling VIX also helps to make some profit.
- Nifty future may trade between 14880 and 15020.
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