Pre Market Report, May 11, 2021 | Stocks and Commodities

 May 11, 2021

Time: 8 am

Pre Market Report:

1. US markets fell due to profit booking.
2. I expected this profit booking on Friday.
3. But bad jobs data triggered rally and now the profit booking came one day later.
4. Profit booking was severe in technology stocks.
5. Nasdaq once again hugely under performed Dow.
6. WHO classifies triple-mutant Covid variant from India as global health risk.
7. This could be one possible reason for profit booking.
8. Asian markets are all down.
9. Japan index is down by more than 700 points.
10. There is public pressure to cancell Olympics games.
11. SGX Nifty is down by about 200 points.
12. So we are back to square, in the trading range of 14200-15000.
13. Even yesterday, markets moved higher without much volume.
14. Index heavy weights under performed yesterday.
15. Despite more than 100 point upmove by Nifty, Reliance closed negative.
16. HDFC Bank moved only in last few minutes.
17. Markets are likely to be highly volatile as today is penultimate day for weekly expiry.
18. There was huge put writing at 14900PE.
19. They will be in trouble today.
20. However majority of these positions are 14900 short straddle, they should be safe.
21. Volatility index is likely to shoot up, after falling for few days.
22. Now India VIX 20 is new normal.
23. It shoots up as and when coming closer to 20.
24. Mid cap index will be in focus after hitting all time high yesterday.
25. Nifty future may trade between 14720 and 14920.