Pre – Market Analysis (8th Dec 2020)

US markets closed a bit lower Yesterday.
Right now U.S Futures are also a bit lower.
SGX Nifty is Trading around 13400.
Asian Markets are mostly Flat.
Yesterday even when Asian Markets were lower along with Dow Futures we kept going higher.
100 Point Gain for Nifty in a day is a joke now.
Almost everyday we are witnessing this Scenario.
Yesterday’s rally could be attributed to short covering.
There are excessive shorts in the system and all are being trapped.
FII’s inflow not stopping.
It seems like they understand the real Potential of India.
Our Indian People are unable to do so because DII’s they keep selling.
I feel this is a time to be cautious on the upside.
We have run up too quick too high.
There has not been any significant Correction since November.
If it comes it will be quick & big.
13500 CE has the highest open interest in weekly options so this is a resistance.
On the lower side 13000 was the support as it had highest open interest.
But now option writers have shifted to 13200 PE.
So we might consolidate In this range.
As the Vaccine news gets more stronger Pharma stocks keep flying.
Pharma & IT are the places where you should focus as a trader.
Nifty might Trade between 13240-13460 today.
Today might be possible to be a completely range bound market.