Pre Stock Market report, November 5, 2020

 

Yesterday, as expected, markets were volatile.

Until afternoon, it was trading stable.

Then Trump announced that he will go to Supreme Court to stop counting of votes.

Immediately Nifty fell 150 points and Bank Nifty fell 600 points.

Within minutes, buying came, Bank Nifty shot up 700 points and Nifty 200 points.

In the last half an hour, there was some cooling, but both Nifty and Bank Nifty closed in Green.

US markets also went for roller coaster ride.

US markets were higher.

Asian markets are also higher.

Yesterday night , Dow Jones closed 650 Points higher.

SGX Nifty was around 12170 at that time.

Currently Dow Futures are flat.

SGX Nifty around 12080.

U.S Elections have become a big drama Currently.

Results have not come and still counting in underway.

Trump was also leading Biden at one point.

f that is an indication, it will be huge gap up.

Even in US, Nasdaq out performed.

So IT index is likely to out perform here.

SBI posted good results Yesterday.

Finally it seems the worst is over for them.

Today also our Markets will be rules by U.S Election Verdict and European Markets which open around 1 pm.

Both FII and DII figures are too small.

Still, markets making big moves.

Remember, still Rs 15000 crores will have to come to India due to MSCI rebalancing.

That can propel the Nifty to all time high.

In US, VIX fell 20%.

But here, it did not even fall 5%.

So going forward, we can expect VIX to fall further.

Reliance has turned around, closed above 1900.

With IT stocks out performing, Reliance finding bottom, Banks started out performing, there is no reason to be bearish now. (For intraday have to keep all eyes and ears open drastic movement may enter anytime )

Nifty future may trade between 11920 and 12180.

There will be high Volatility today as we are opening above 12k.

If we sustain 12k and there's no incremental Negative news then we should close at the highs of the day.

If we start inching below 12k with global markets pressure then we could witness quite a heavy sell off.

Chances of a Consolidation today are quite low.

So option sellers should not go too big.

Reduce Position size and exit in small gains.

Do not wait till 3.30 pm and wish your options should end at ZERO each & everytime.

Nifty might Trade between 11850-12160 today.

Wide range due to Global Uncertainty.