May 12, 2021
Time: 8 am
Pre Market Report:
- Yesterday Dow fell more than Nasdaq.
- Dow fell more than 600 points at some point and closed more than 400 points down.
- Even now Dow Futures are down about 100 points.
- But Asian markets seems to be resilient.
- Some Asian markets are trading in Green also.
- SGX Nifty is down by about 40 points.
- Today evening US will declare its Inflation data.
- That will be watched very closely for any clue about future interest rate direction.
- Remember in February 2018, when Inflation data was not favourable, Dow fell 5% during market hours and fell another 5% after market hours.
- Tomorrow is a trading holiday in India.
- So we can expect gap up or gap down on Friday.
- Stock specific action is likely to continue due to MSCI rejig.
- Many stocks are added and few got deleted from MSCI index.
- Yesterday our market performance was not bad compared to Global markets.
- It was only large cap stocks that fell.
- Mid caps and small caps did very well.
- In fact, mid cap and small cap ended in Green and mid cap scaled another record high.
- Huge OI added at 15000CE and above.
- Moreover 14900 straddles which were very active day before yesterday shifted to 14800 straddle.
- Nifty 14800 straddle premium is about 150.
- So Nifty is likely to expire between 14650 and 14950.
- Lupin, Asian Paints, Voltas, Jindal Steel, Tata Power are some of the key compnaies set to declare results today.
- So though overall market is likely to be subdued, stock specific action related to MSCI rejig and Corporate results may continue.
- Mid caps and small caps are likely to out perform.
- Reliance showed some positive moves yesterday but due to overall sentiment of the market, it did not move much.
- HDFC came under profit booking after rallying about 100 points in previous two sessions.
- IndusInd Bank looks good among banking stocks.
- Nifty future is likely to trade between 14600 and 15000.
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