Time for consolidation?
Pre-Market Report :
- Asian markets are mixed.
- SGX Nifty is down slightly.
- On Friday, our markets hit a fresh all-time high.
- Bank Nifty looks like breaking out.
- Bank Nifty closed above 30K first time since March 2020.
- RBI comments and PM Modi's Vaccine comments helped markets to close at an all-time high.
- FIIs also keep pumping in money.
- Nifty futures trading at a significant premium.
- HDFC Bank was down last week due to RBI restriction on its digital products.
- Otherwise, Bank Nifty would have crossed 31K.
- Surprisingly Reliance was the top loser on Friday.
- Reliance, HDFC Bank, the top 2 stocks are down.
- Yet markets are higher.
- ICICI Bank ADR was up 5% on Friday in the US.
- Infy ADR was also up more than 3%.
- Today markets may open lower by 30, 40 points due to Global cues.
- What is more important is closing.
- Ametures open the market and professionals close the market.
- One good thing is that India VIX is inching lower.
- It is likely to break 18 on the downside.
- Markets are likely to go for consolidation for the next few weeks.
- Autos and Metals are doing very well.
- PSU Banks also doing very well.
- The next leg of the rally will come when HDFC Bank and Reliance start moving higher.
- That may not happen in December.
- I will be selling Put options on every dip.
- I prefer to sell Put options 12500PE and below.
- Prefer to sell 12800PE in weekly options.
- Bank Nifty, prefer to sell weekly Put options of 28500, 28800.
- Nifty future may trade between 13200 and 13380.
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