Pre Market Report, May 4, 2021 | Stocks and Commodities

 May 4, 2021

Time: 8 am

Pre Market Report:

1. US markets ended mixed with Nasdaq down.
2. Asian markets are also mixed.
3. Major markets like Japan, China are closed.
4. SGX Nifty is down by 30 points.
5. Yesterday markets saw dramatic recovery from low levels.
6. The recovery cam without any institutional support.
7. FIIs have sold for about 2300 crores in Cash market.
8. But DIIs have bought for about 550 crores in Cash market.
9. Still Nifty recovered more than 300 points from intraday low to intraday high.
10. Number 1, this shows that 14200 will act as a good support.
11. Number 2, Corona cases, there are some positive news.
12. The cases may peak out very soon and may start going down.
13. Number 3, people are buying when there is a bad news.
14. Auto companies declared very bad monthly auto sales, but Auto index was up yesterday.
15. It was Reliance that dragged the markets yesterday.
16. But at the same time, FII selling and bad Global cues can drag the markets.
17. FII long positions in F&O has come down to about 53%.
18. Usually markets bottom out and rally when their long positions is between 45 and 55%.
19. Sun TV fell about 7%.
20. Classical case of buy on rumour and sell on news.
21. Price distortion could be due to trading ban also.
22. But it is a good buy below Rs 500.
23. Yesterday Nifty future premium was high due to short covering.
24. That premium may get reduced today.
25. Bank Nifty future is trading almost at 200 points premium.
26. For the last 10 weeks, markets are highly volatile but not going anywhere.
27. For last few weeks, Nifty has been trading between 14150 and 15050.
28. That trend may continue with stock specific action due to corporate results.
29. Expect a volatile seesion today, as usual Bank Nifty will be making some big moves
30. Yesterday Bank Nifty under performed, Nifty closed in Green but not Bank Nifty.
31. Nifty future may trade between 14480 and 14780.