Pre market report for 9th June 2020 -Nifty Bank Nifty

CURTAIN RAISER for 9th JUNE NIFTY

• S&P 500 wiped out all the losses of 2020.
• Nasdaq is at all time high.US market closed higher
• Asian markets are mixed.
• SGX Nifty is up by about 50 points.
• Yesterday morning I said, markets are opening gap up but Nifty future likely to break 10200, at least once.
• But it broke 10200 and traded below that level and closed "Doji" pattern.
• That shows indecisiveness.
• We are struggling between positive Global and negative Local cues.
• We are struggling between FIIs who are buying and DIIs who are booking profits.
• OI at level of 10500 and 9500 is still very high
• Hence markets are highly volatile.
• Yesterday Nifty future fell more than 200 points from intraday high to intraday low.
• Bank Nifty was going all over the places.
• Bank Nifty future fell 900 points from intraday high to intraday low and recovered about 300 points.
• We are under performing world markets and that may get corrected in the next few weeks.
• Yesterday many index heavy weights like HDFC Bank, Reliance, Kotak Bank fell more than Rs 50 from intraday high to intraday low.
• Surprisingly, yesterday HDFC Bank and Reliance contributed most for Nifty fall.
• Since morning HDFC Bank was under performing, may be some index management.
• Reliance met with selling pressure many times around 1620, so need to watch very carefully, if Reliance crosses 1620, it can go to 1700 lifting the Nifty.
• In that case, even Nifty 10500 target is not difficult.
• More shorts are being created around all time high price, one short covering is enough.
• Auto stocks will be in Focus as Hero Moto declares results.
• Yesterday's high volatile market and closing at Doji pattern indicates markets are likely to break out or break down.
• The probability of break out is high.
• So I am not selling any Call options except for hedging.
• Nifty future may trade between 10120 and 10320.
• Traders keep selling put options for next series and this series as well from 10200 to 10500