Pre-Market Report, December 14, 2020

 Pre-Market Report :

US futures are higher.

Asian markets are mostly positive.

SGX Nifty is trading around 13580.

The US rolls out the Vaccine program. Trump announced that it will be free for all US residents.

On Friday, FIIs have bought for Rs 4500 crores in the cash market.

Both these are having an effect on SGX Nifty.

SGX Nifty is trading close to all-time high.

On Friday, Nifty fell 180 points intraday mainly due to DII profit booking and traders profit booking due to the weekend.

I have been mentioning that any fall of more than 100 points in Nifty is a buying opportunity, one can sell 13000PE and below.

Even on Friday Nifty 13000PE traded around Rs 75 but closed almost flat.

On Friday, Nifty future has lost about 40 points premium over spot and Bank Nifty future has lost nearly 100 points premium.

Remember just a week before Nifty future was trading at 70 points premium to spot.

Now is just about 10 points.

If this is due to the huge profit booking, then markets should consolidate.

If this is due to shorting, then sooner or later short covering will take place.

On Friday, the energy sector did very well but  Reliance has failed to perform due to profit booking.

FIIs are still holding 77% long and 23% short.

HDFC Bank has been underperforming.

Bank Nifty will touch 31K the day when HDFC Bank starts moving higher.

It is down nearly 70 rupees in this month alone.

That alone wiped out more than 300 points from Bank Nifty.

Even at this peak, the top 2 stocks, Reliance and HDFC Bank are not performing.

But broader markets are doing very well.

Every day one or the other sector doing extremely well.

IIP data, US VAccine program, FII buying in the Cash market all add to positivity.

Today WPI Inflation and CPI Inflation data will be out.

But they are not expected to be very good.

Anyway, that is a non-event for markets.

The fight between FIIs and DIIs likely to continue.

Nifty future may trade between 13460 and 13620.