- US markets closed lower yesterday.
- Asian markets are also lower.
- SGX Nifty is down by more than 100 points.
- New Corona Virus and Senate Election for two seats are the reasons for huge profit booking.
- These issues leading to a big fall.
- Yesterday the Markets were quite Volatile.
- From a big gap up it got immediately sold into but also recovered by EOD.
- Markets all over the world are trading near all time high.
- So any negative news, markets can fall 5 to 10%.
- Time to be cautious now.
- Here in India, IT stocks did very well.
- Most IT stocks hit fresh all time high.
- Metal index was up 5% yesterday.
- Though Nifty fell 200 points intraday, entire loss was recovered to close at higest point of the day.
- Usually that is a bullish sign.
- But since US markets fell, SGX Nifty indicating about 100 points gap down.
- Bank Nifty future closed more than 150 points premium to spot price.
- This Indicates Bullish signs.
- Midcaps and small caps out performed.
- Banking is the only sector that closed flat.
- Yesterday Bank Nifty was flat but Nifty closed higher.
- FIIs are net buyers for about Rs 1500+ crores.
- DII’s are net sellers for 4th month now.
- U.S Markets have recovered quite well from lows.
- So today will be interesting day to watch out.
- If we defend 14000 then we might close higher but if we go below yesterday’s low in first hour then selling pressure will accentuate.
- Nifty might Trade between 13980-14220 today.
- Screenshot shown above indicate the negativity of the market through the global indices futures.
- It might be possible to see the positive clues in pre opening session, but it will be a short recovery.
Pre – Market Analysis (5th Jan 2020)
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