Pre-Market Report:
- Yesterday morning, though Asian markets were negative, we were doing well.
- In the afternoon, when Europe opened, the news came that US 2 Trillion suspicious money handled by Banks.
- Banking stocks fell in Europe.
- That triggered a sell-off in Banking stocks here also, which were already weak.
- Then the sell-off spread to other stocks also.
- Reliance fell more than Rs 80 from intraday high.
- Many stocks fell by 5% to 10%.
- In my Dalal Street Week Ahead, I mentioned that this week will see either 11200 or 11800.
- But I was hopeful that 11800 will be seen.
- But Corona Virus spread, the UK considering another lockdown to control Coronavirus, Banking scams broke out, Nifty reversed and tested 11200 almost.
- When we closed Dow's future was down about 500 points.
- When markets opened there, it was down 950 points at the lowest level but recovered about half of the losses to close 500 points lower.
- In fact, Nasdaq recovered about 90% of its losses, closed just 15 points lower.
- Since Nasdaq was sold off already, there seems to be selling exhaustion.
- But here, Bank Nifty is not seeing any selling exhaustion.
- Yesterday's sell-off may be a knee jerk reaction.
- Today I expect European and US markets to stabilize.
- SGX Nifty is trading about 60 points higher.
- But we need to remember that even after 3 pm, Nifty fell nearly 75 points.
- We may be recovering just that last 30 minutes loss.
- Though recovery may be very little, we are happy that markets do not continue to fall.
- Yesterday, in many Social Media, people were talking about Nifty 11000 today itself.
- Gold, Crude, European Futures, and US Futures are all recovering some lost ground now.
- September series is one of the worst series.
- Huge volatility, Nifty fell more than 150 points intraday many times.
- Both FIIs and DIIs were net sellers in the cash market for about Rs 500 crore each.
- FIIs were not short in F&O also.
- So it was not really short-selling that took the markets down, it was lack of buying that triggered the sell-off.
- Nifty future may trade between 11200 and 11380, wider range due to volatility.
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