Pre Stock Market Report, September 07, 2020

 Pre Stock Market Report, September 07, 2020

1. US markets went for a roller coaster ride on Friday.
2. Apple opened 1% higher, then went down 9%, then recovered entire losses of 9% to close positive.
3. Tesla also the same, fell 8% and then shot up 11%.
4. Asian markets are mixed.
5. US futures are also mixed.
6. One good thing is that US markets are closed today.
7. In last one week, Nifty saw two sharp sell off.
8. Last Monday, from 11800 to 11350.
9. Last Friday, from Thursday's close to Friday's low, it was about 250 points
10. SGX Nifty hit a low of 11240 on Friday night.
11. FIIss have sold for Rs 1889 crores and DIIs have sold for Rs 457 crores.
12. After a long time, both FIIs and DIIs have sold heavily.
13. That is really a bad news.
14. Nifty closed below 20DMA.
15. U.S Markets are closed today so market should focus on local cues.
16. As we will get direction from local Factors only.
17. Markets are looking weak now.
18. One side of the Economy front everything is turning negative.
19. But Markets kept rallying.
20. This was only because of excessive liquidity.
21. When Markets rise without support of other factors mostly economy , a good correction is expected.
22. When will that correction happen nobody knows.
23. We cannot exactly time the Market.
24. But this is not a market to buy into now.
25. This is the Market to sell into the Rallies.
26. All the Rallies/ Pullbacks near Resistance levels should be sold into.
27. Last Monday low of 11350 was broken on Friday.
28. Bank Nifty was almost 500 points lower than last Monday low.
29. Because of this, SGX Nifty is lower despite positive Asian clues.
30. Hong Kong is up, despite some civil unrest started on Sunday.
31. Banking stocks look very weak.
32. But despite such a sharp fall of more than 2000 points, it is still above 20DMA.
33. Markets are likely to be volatile.
34. The talk of the town is IDEA announcing some news at 11.45 am.
35. But that stock is under trading ban, no fresh positions allowed.
36. Nifty highest open interest among Call options from 12000 to 11500 is a big concern.
37. Maruti was the only stock that ended in Green on Friday and that too closed significantly lower than intraday high.
38. Cases in India have now reached to 80000 per day relating to corona virus Positive.
39. Media is not showing you negative economy & corona virus updates now.
40. All they are showing is Unnecessary news which doesn't bother any of us.
41. Bank Nifty will continue to Underperform compared to Nifty.
42. Nifty might trade between 11200-11380 today.
43. Two sharp sell off in one week, both FIIs and DIIs selling aggressively are two big negatives for our markets.
44. Positive Asian clues, lower Crude price, Mixed US futures are some positives.
45. SGX Nifty is also very volatile.
46. Markets will see more selling pressure if Nifty future breaks 11300.
47. Nifty future may trade between 11280 and 11460.