Pre Stock Market Report, September 28, 2020

US markets closed higher on Friday.
Asian markets are higher.
SGX Nifty is up by about 70 points.
This is a good gap up, after rallying about 250 points on Friday.
China Industrial profit data came positive.
That is one of the reasons for bullishness in Asia.
First time, in last many months, DIIs buying matched FIIs selling.
FIIs have sold for Rs 2000 crores and DIIs have bought for Rs 2000 crores in Cash market.
In a matter of 4 days, FIIs have sold for Rs 10000 crores.
But I mentioned that, if on Friday, markets recover, then 10800 will be the support for the short term.
Now SGX Nifty is above 11100.
Today, the most important thing is the 'interest on interest' case in Supreme Court.
Bank Nifty seems to be in over sold region.
In September, Bank Nifty future fell from 25300 to 20500.
That is nearly 5000 points or 20%.
There are still some negatives.
Corona infection continue to rise in India, Europe and US.
So far about 1 million people died and WHO said the death can reach 2 million.
India specific news also there, both Pakistan and China borders, there are some problems.
As long as there are no incremental bad news from Corona, markets can stabilise all over the world.
ITC will be in focus as Maharashtra bans sale of lose cigarettes.(told few days back ITC can show downtrend in the upcoming trading weeks )
Markets may open gap up but that gap up may be sold into.
Then markets may go higher in the afternoon.
European cues and Interest on Interest case will decide the market direction in the afternoon.
This volatility is likely to continue throughout October.
Usually 5 week series, that too results season 5 week series, tend to be volatile.
Bank Nifty may out perform today.
Nifty future may trade between 11000 and 11180.

source:pr | ss | mc

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