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

 April 08, 2021

Time: 8 am

Pre Market Report:

1. US markets ended mixed with Dow and S&P 500 slightly higher and Nasdaq slightly lower.
2. Fed minutes indicated that accomodative policy will continue.
3. That has reassured the markets.
4. Here in India, RBI Governor came out with Indian style of QE.
5. Nobody expected this kind of liquidity measures like G Sec acquisition program, etc.
6. As a result Bank Nifty shot up more than 1000 points from intraday low.
7. Clearly RBI Policy has become a trigger for short covering.
8. For the past few days Indian markets have been underperforming the Global peers.
9. Now that will get adjusted.
10. Yesterday, both Nifty and Bank Nifty made higher high.
11. Today Nifty future level to watch is yesterday's high of 14950.
12. Right now SGX Nifty is trading closer to that.
13. Yesterday both FIIs and DIIs were net buyers in Cash market.
14. That is an additional booster shot for Bulls.
15. In the last few weeks, Nifty corrected as and when Nifty crossed 14900.
16. If Nifty crosses 14900 and trades firmly above that, then we can expect further rally.
17. Yesterday Reliance JIO Bharti deal helped both companies and Reliance shot up more than 3% before profit booking set in.
18. There was huge addition of OI at 14800PE and 14700PE.
19. Earlier smart money did 14700 short straddle, yesterday that one was shifted to 14800 short straddle.
20. The combined premium of 14800 short straddle is about Rs 140. 
21. So these people expect Nifty to trade between 14660 and 14940.
22. Bank Nifty saw huge addition of OI at 32000PE.
23. Smart money also doing short straddle at 33000.
24. Bank Nifty 33000 short straddle was trading around Rs 550.
25. As long as Bank Nifty is not making more than 500 points move, these people will make some money.
26. Stock specific action will continue in IT and Metal stocks.
27. Next week, most IT companies declare results.
28. Next Saturday HDFC Bank declares results.
29. For the last two days, within minutes of market opening, Bank Nifty fell more than 300 points.
30. Today, that may not be the case.
31. Nifty future may trade between 14800 and 15000.