Daily Report · August 6, 2020

Pre Market Report 6 Aug

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  • Gold and silver are talk of the town, especially Silver. It gave a 40% up move in a matter of 13 trading days. It is trading at $27.
  • US markets closed higher.
  • SGX Nifty is up 30 points
  • Stock market seems to have disconnected from ground economic situation.
  • They say it’s the biggest divide between the main street and wall street.
  • Nevertheless, we only want to ride the trend but we will remain cautious.
  • Nifty PE is above dangerous level of 30. Never before have nifty crossed or approached 30 pe and not fallen.
  • Wednesday was very volatile, Sebi has capped intraday margin to 5x which is clearly affecting liquidity
  • NIfty fell more than 130 points and Bank Nifty fell more than 500 points intraday.
  • Reliance, HDFC bank, SBI the usual suspects were under pressure. They command a high weightage in the indices. If they fall, they make other stocks fall due to synthetic effect.
  • Lupin, IDEA, Hind Petro, Pidilite, Adani Enterprises will declare results today
  • HDFC announced 14000 cr QIP
  • Axis bank also declared QIP
  • Everyone in the market seems to want moar cash, whether be it reliance, hdfc, icici or yesbank
  • But today is the BIG day, RBI is going to announce Monetary Policy Today
  • Will RBI cut rates?
  • Will RBI allow for one time restructuring? Will RBI extend moratorium?
  • Or some other Jumla?
  • These are some of the questions that need to answered
  • Bank Nifty will dance today
  • NIfty may trade between 11000-11200
  • Bank Nifty if crosses 22k, we’ll see exploding move. Support remains at 21k