Pre Stock Market Report, September 21, 2020

 Pre Stock Market Report, September 21, 2020

1. US markets closed in Red on Friday.
2. US markets were highly volatile, due to "Quadruple Witching" Day.
3. But Asian mrkets today morning are mostly flat.
4. Japan is closed, Australia and Hong Kong down slightly while other Asian markets are slightly positive.
5. But SGX Nifty is down by about 30 points.
6. Fridays are becoming highly Volatile now.
7. Bank Nifty collapsed more than 600 Points on Friday in less than 30 Minutes.
8. There were lot of rumors floating around, including border tension at India Pakistan border.
9. But it seems that the fall was mainly due to HDFC Bank and Kotak Bank.
10. In fact, Nifty, on a close to close basis, down only about 10 points.
11. Many frontline stocks, including Reliance. closed in Green.
12. Bank Nifty s struggling, even after falling more than 3000 points.
13. HDFC Bank and Kotak Bank removed from FTSE rebalance could be a major reason for this sell off.
14. ICICI Bank closed almost flat.
15. On Friday, Nifty future low was 11455.
16. Now SGX Nifty is trading closer to that level.
17. One good thing is that there was no Institutional selling.
18. US futures are higher.
19. Sell off was limited to banking stocks.
20. But there are some negatives also.
21. Some Asian markets are negative.
22. Sentiment in Bank Nifty is very bad.
23. T Stocks and Reliance look good and are Supporting Nifty.
24. Option sellers need to be very careful while reading in Monthly expiry contracts.
25. Premiums are too low and the Vega (Volatility) effect is quite high.
26. Better to sell Stock options or trade in next Month options.
27. Markets make a 200-300 Point move on Monthly Expiries.
28. Presidential Elections in U.S.
29. Corona Virus Cases topping everyday.
30. More than 1 Lakh cases on a daily basis.
31. Section 144 Imposed in Mumbai and Rajasthan.
32. India has failed Miserably to deal with Corona Virus pandemic.
33. While most of the countries have reduced the fear to a lot of extent but we are unable to control.
34. Nifty might Trade between 11420-11580 today.
35. US Stimulus is getting delayed.
36. Interest on Interest case comes up in Supreme Court only next week Monday.
37. Pharma stocks looking good.
38. We can expect some recovery later in the day, as long as Friday's panic low of 11455 is held.
39. Today, it is likely to be inside candle.
40. Nifty Future may trde between 11450 and 11600.