Dalal St Daily 20th pre market report

 GLOBAL MARKETS

  • US markets ended up in the negative territory
  • Bench mark indices gave up their gains due to stimulus issue.
  • Wall Street closes lower as stimulus deadline nears without deal.
  • DOW jones ended up 400 points or 1.44% lower.
  • Apple was the major dragger of the indices.
  • S&P 500 VIX rose for the 5th straight session. Now its above 29 and nearing towards 30 which is a serious issue but all the fear showing in the market is due to US elections.
  • Dollar Index is at 93.44
  • Crude is down by 0.5%.
DOMESTIC MARKETS
  • Asian markets under pressure as Wall Street falters, COVID-19 cases rise.
  • Asian marktets are seeing this pressure as a deadline for US lawmakers to pass an economic stimulus bill approached and record daily covid infection cases in Europe.
  • SGX Nifty is down by 0.5%
  • All global indices are following the US trades on Monday and are bleeding Red.
  • the dollar edged lower on Monday as investors were cautiously optimistic that U.S. lawmakers could agree on a fiscal stimulus package ahead of the elections, and that a coronavirus vaccine will be ready by year-end.
  • Our Bench mark indices Nifty took support and was up by approximate 200 points. yes there is nothing in this 200 points is a normal thing for our indices but the eye dropping this it is shooting up without the help of Reliance, HDFC twins, Infosys. these stocks make up nearly 42% weightage in the index but these stocks are underperforming when the markets are rallying.
  • The funny thing is Bank Nifty shot up nearly 700 points without the help of HDFC Bank and this is the first ever i have saw Bank Nifty rising nearly 3.5% without the help of HDFC Bank.
  • Just imagine once what happens once these stocks shoot up.
  • Markets are correcting heavily which shows their is heavy rally once all the profit taking ends.
  • Nifty breaking 12000 is a matter of days as of now and 12000 is a striking level at this price point.
  • But Bank Nifty is still down by almost 30% from its all time high.
  • HUL came out with double digit growth in its financials.
  • All the major stocks are coming out with good results which is so good for bulls and breaking 12000 is a matter of days even with this. 
  • People who are speaking about the crash are really wrong crash will not come but Bull Run will defeinetly come in the nearing days.
  • The market continued its uptrend for the second consecutive session and closed a percent higher on October 19. Banking and financials, FMCG and metals stocks led the benchmark indices higher.
  • The overall market breadth has started to improve and the broad market indices like Midcap and Smallcap have ended with the gains of 0.77 percent and 0.73 percent respectively.
OI ANALYSIS

CALLS
  • Maximum Call open interest of 24.26 lakh contracts was seen at 12,500 strike.
  • Call writing was seen at 12,200 strike.
  • Call unwinding was seen at 11,700 strike.
PUTS
  • Maximum Put open interest of 25.16 lakh contracts was seen at 11,000 strike.
  • Put writing was seen at 11,100 strike.
  • Put unwinding was witnessed at 11,300 strike.
TRADING RANGE
  • Nifty may trade between 11750-12000
  • Bank Nifty may trade between 23300-25000
FII & DII ACTIVITY
  • FII have turned net buyers in the cash market and they have bought for 1656 Cr worth of shares in the cash of market.
  • DII have turned net sellers in the cash market and they have sold for 1612 Cr worth of shares in the cash of market.

Location: Bengaluru, Karnataka, India

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