Pre Market Report, May 06, 2021 | Stocks and Commodities

 May 06, 2021

Time: 8 am

Pre Market:

1. US markets closed mixed again.
2. Dow at another record but Nasdaq was down for 4 straight days.
3. Asian markets are higher.
4. SGX Nifty is up by about 70 points.
5. Considering the fact that FIIs keep selling everyday and both FIIs and DIIs have both sold in Cash market yesterday, this gap up really surprising.
6. I read a news article in Bloomberg, "India's stock market is on another planet'
7. Even Bloomberg wonders why our market is so resilient despite the worst pandemic.
8. Always remember the rule, "Markets will not crash two times for the same reason"
9. Forget about Nifty falling to 7500, last year low, it did not even fall to 12400, last year high.
10. This shows the maturity of Retail Investors.
11. In fact FIIs seems to be immatured, they keep seeling for the last few weeks.
12. RBI Governor's sppech has turned the markets around.
13. But still, market leader Reliance is struggling around bottom of trading range 1900-2100.
14. As usual Bank Nifty has been volatile but Kotak Bank is looking good.
15. Tata Steel has come out with good results and declared good Dividend.
16. Today Hero Moto will declare results.
17. What was a surprise in last two trading sessions, India VIX fell about 10% in last two days.
18. Option Premiums have come down.
19. Looking at OI, huge OI added at 14600PE.
20. Good amount of OI added at 14850CE.
21. Those who sold both will make some profit if Nifty trdaes between 14550 and 14900.
22. But we can expect markets to be volatile as usual.
23. If markets are firm, then we can expect some selling in the afternoon.
24. Weekly expiry will add to the volatility.
25. Nifty future may trade between 14600 and 14850.