Pre Market Report, May 10, 2021 | Stocks and Commodities

 May 10, 2021

Time: 8 am

Pre Market Report:

1. On Friday, US jobs data came much lower than expected.
2. So markets shot up in US on Friday as interest rates may continue to be lower.
3. SGX Nifty closed at 14980, 120 points higher on Friday night.
4. Today morning Asian markets opened mixed.
5. But emerging markets are likely to do very well.
6. SGX Nifty is trading around 15K.
7. Considering the severity of Corona cases, Nifty kissing 15K is a remarkable event.
8. As I have been saying, Corona is the only headwind for our markets.
9. Once that is settled, Nifty is likely to sclae new high.
10. Bank Nifty has been under performing.
11. This week, Inflation data, IIP data may help Bank Nifty to move higher.
12. Now FIIs have turned net buyers, Banks may out perform.
13. Data shows FIIs have sold for about Rs 1140 crores and DIIs have bought for Rs 1470 crores in Cash market.
14. But there was a block deal in SBI for Rs 4000 crores.
15. This Rs 4000 crore worth of shares sold by an FII.
16. Out of this Rs 4000 crores sell, Rs 2500 crores was bought by DIIs and the rest by other FIIs.
17. If you take this into account, then on net basis, FIIs are actuall buyers for more than Rs 1000 crores and DIIs are actual sellers for more than Rs 1000 crores.
18. So I not surprised the kind of gap up SGX Nifty is showing.
19. Rupee is likely to appreciate today.
20. Today no major corporate results.
21. HDFC twins and Reliance are showing some activity.
22. Looking at Open Interest, Nifty has a major support at 14500 and major resistance at 15200.
23. There are only three trading sessions in this week for weekly expiry.
24. In the last few weeks, selling came as and when Nifty future crossed 15K.
25. So today it will be interesting to see whether markets sustain the gap up.
26. Last two trading sessions, markets were less volatile and India VIX also moving down.
27. Nifty future is likely to trade between 14880 and 15080.