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Pre Stock Market Report, October 5, 2020

 

Pre Market Report, October 5, 2020


  1. As soon as News emerged that Donald Trump has Tested Positive for Corona.
  2. Markets all over the World fell by 1-2% except China Market. (UNDERSTAND CHRONOLOGY HERE)
  3. He has released a Video on his Twitter timeline stating next 48 hours are very critical for him and he is in a good condition now.
  4. So Asian markets are higher.
  5. SGX Nifty was below 11300 on Friday when Trump news has highlighted.
  6. But now SGX Nifty trading around 11400.
  7. Now US markets will focus on US$2.2 trillion stimulus.
  8. We have lot of local cues.
  9. FIIs have turned net buyers aggressively after selling for nearly two weeks.
  10. They have bought for Rs 1632 crores in Cash market.
  11. DIIs also bought for Rs 269 crores.
  12. Reliance retail is attracting more investments.
  13. Reliance has bagged another cheque from GIC (Govt Investment Corporation of Singapore) is investing about ₹ 5500 crores.
  14. Upside 11550-11600 is a big Resistance level.
  15. Whereas downside 11200 is a support.
  16. Expecting Markets to be Volatile within this range.
  17. If any of these levels broken Significantly then we can see big Moves in that direction.
  18. Nifty might Trade between 11320-11480.
  19. Next one is "Interest on Interest" case, which has been a big drag on Banking Stocks.
  20. Now Govt is prepared to pay for up to Rs 2 cr loans.
  21. Since this news is already known, we can say, today this news may be a non event.
  22. TCS is announcing Q2 results and considering buy back of shares.
  23. So we can expect TCS to be positive
  24. Next week Infosys and HDFC Bank are set to declare results.
  25. There are more good news than bad news.
  26. So markets may not correct much from here.
  27. India VIX is also cooling off, now around 18.
  28. The only concern now is the health of US President.
  29. Any further deterioration of his health will be a potential drag.
  30. Other than that there are no negatives for the markets.
  31. TCS, Reliance, Banking Stocks will be in focus.
  32. Auto companies posted good monthly sales.
  33. ITC has been doing very badly.
  34. One can sell 160PE.
  35. Nifty Future may trade between 11360 and 11500.
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