Pre Market Report, April 9, 2021 | Stocks and Commodities

 April 9, 2021

Time: 8 am

Pre Market Report:

1. US markets closed higher, second straight day of record high closing for S&P 500.
2. But Asian markets are struggling and mixed.
3. SGX Nifty crossed 15000 briefly and fell.
4. Right now SGX Nifty is trading around 14920.
5. Yesterday late selling in Banking and Financials dragged the markets down.
6. Yet, on a closing basis, yesterday was highest closing in this series.
7. Nifty is up for third straight day.
8. Bank Nifty was just too volatile.
9. HDFC Bank particularly did not support the market.
10. The action is actually not in large caps.
11. The real action is in mid caps and small caps.
12. There was a news report that said Mutual Funds are seeing inflows for the first time in last 9 months.
13. All AMCs were up yesterday, Nippon India was up by 5%.
14. Due to Corona resurgance, all Pharma stocks are doing well.
15. IT stocks will be in focus as most of them will declare results next week.
16. For next week expiry (April 15), more Calls are written than Puts.
17. Puts are written for away strikes while Calls are written from 14900CE to 15500CE.
18. But is not a good ides to sell Calls at near strikes, if the results are good from IT companies, if the markets move higher, then these Calls will come into trouble.
19. At the same time, people are thinking that almost all IT Stocks are trading near all time high or at all time high.
20. IT stocks shot up significantly in last few weeks due to the advantage of work from home due to corona and expectation of good results.
21. These stocks may come under severe selling pressure, if the results are even slightly disappointing.
22. In fact, that is what happened during last quarter results.
23. Reliance has been struggling in the range 1900-2100 for past many months.
24. Yesterday's fall towards the end can be due to expiry related issues.
25. Nifty future may trade between 14850 and 15050.