Pre-Market Report, December 2. 2020

 US markets are starting the game, one day up and one day down.

Will India also follow?

For Pre-Market Report :

1. US markets closed higher but closed off the highs.
2. Right now, US Futures are down.
3. Asian markets are mixed.
4. Now, US markets hit an all-time high, it is going for one day up and one day down the game.
5. The day before yesterday, it was down, yesterday it was up and today (as per Futures Indication) it is going to be down.
6. SGX Nifty also dances according to US tunes.
7. SGX Nifty on Friday night 13100, Monday afternoon (Indian markets were closed) 12820, yesterday night 13212, and now it is 13120.
8. Yesterday's rally in our markets was surprising.
9. People thought FIIs will not buy significantly as MSCI rebalancing was over.
10. But they have bought for more than Rs 3K crores.
11. People also thought volumes will be less due to SEBI rules regarding Peak Margin.
12. But the real effect of Peak Margin will come only in September 2021.
13. Right now, only intraday traders with huge leverage only will be affected.
14. The rupee has appreciated by more than 30 paise yesterday is good news for bulls.
15. Reliance has shown some positive moves yesterday.
16. What was surprising yesterday, Bank Nifty was up significantly, despite top 2 stocks, HDFC Bank and Kotak Bank closed in Red.
17. IndusInd Bank is up 400% from March lows.
18. HDFC and LIC Housing Finance fell last week.
19. Now they are moving higher.
20. Nifty 13000PE added huge open interest in weekly options.
21. So Nifty might find support at 13K this week.
22. Call side, only 13500CE added more open interest.
23. Bank Nifty 29500PE and 30000CE added more open interest.
24. So Bank Nifty may consolidate between 29300 and 30200 (Taking Rs 200 premium into account).
25. Usually, Wednesday trades are hugely volatile.
26. We have to see how the trade goes on today.
27. With new SEBI rules regarding intraday leverage, volatility may be less on Wednesdays and Thursdays.
28. PSU Banks are doing very well after a long time.
29. All over the world, we can expect some consolidation.
30. Nifty future may trade between 13020 and 13220.