April 6, 2021
Time: 8 am
Pre Market Report:
- US markets closed at all time high.
- But Asian markets are not sharing that optimism.
- Asian markets are mixed.
- SGX Nifty is slightly down.
- Yesterday FIIs have sold for about Rs 932 crores in Cash market.
- That is not surprising.
- Sell off could have been triggered by some big FIIs who wanted to exit the markets due to corona virus fear.
- What is surprising, even on such a big fall, DIIs did not come to buy and support the market.
- DIIs have bought just for Rs 75 crores.
- Banks and Financials have fallen the most.
- Bajaj Finance fell nearly 7% at the lowest point.
- But all IT stocks were up.
- Some metal stocks and Britania were up.
- Crude has fallen by more than US$ 2 per barrel.
- We have to see this lower crude, slight depreciation of Dollar, slightly lower Dollar index will help our markets to stabilise.
- I think, yesterday's reaction, is just a knee jerk reaction to corona virus second wave.
- If that is the case, yesterday's low should be the low for near term.
- Yesterday, SGX Nifty high was 15020 and Nifty future low was 14490.
- That is more than 500 points swing, a big Candle.
- So for near term, Nifty future support ai at 14490 and resistance is at 15020.
- Yesterday huge OI added at 14800CE, 14900CE, 15000CE.
- Since 14800CE was trading around Rs 50, the first resistance will be at 14850.
- Cash market selling was not significant for such a big fall.
- So the fall is due to short selling.
- One good thing about short selling, if there is any positive trigger (may be RBI Policy and RBI Governeor's comment about Economy), short covering will happen.
- We have been seeing our markets for last few weeks.
- Making large moves between 14250 and 15450.
- Few days before, Nifty fell more than 600 points in two days and in next two days Nifty shot up more than 600 points.
- India VIX was up 15% at one point, up only about 6%.
- Nifty future may trade between 14600 and 14850.
Comments
Post a Comment