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Pre - Market Analysis (3rd August 2020)

  1. US markets were Trading Negative on Friday but in last 45 minutes U.S Markets closed in Green from being down more than 300 points.
  2. Asian Markets are all over the place and are Trading Mixed.
  3. SGX Nifty is Trading Negative by 60 Points.
  4. First thing which im noticing in all the Markets is contraction of Markets.
  5. Contraction of Markets means a few stocks performing well , mostly index heavy weights.
  6. U.S Markets the highest Weightage is of Amazon and it has come up with great results 
  7. Indian Markets , Reliance has more than 15% weightage. Due to Reliance itself , our Markets have Witnessed big rally in the Month of July.
  8. So these handful of index Heavyweights are only Rallying.
  9. Other way of looking at it is Bank Nifty seems to be very Weak.
  10. Banking stocks havent joined the rally yet.
  11. So Bank Nifty is a major index to measure about Economy.
  12. Because of handful of companies Nifty crossed 11k.
  13. Auto Sales have imported Considerably and all the companies have posted very good sales numbers over the Weekend.
  14. This Thursday we have an important RBI Policy.
  15. This would be a major event for Bank Nifty.
  16. Advice is to remain Cautious on the upside.
  17. 11000 is a major support on Nifty and 11300 is a major Resistance.
  18. Once 11000 breaks then we may witness further selling in the Markets.
  19. FII's have turned Net Sellers whereas DII's remain Buyers.
  20. Reliance also seems to have lost it's Momentum and has Corrected 5-6%.
  21. August Series will be highly Volatile and Trading without Hedging can lead to destruction of Capital.
  22. SEBI new rules will be Implemented in a Staggered manner from Dec 2020.
  23. All the Intraday Traders who used to get fancy 15-20 times Leverage will become a history now.
  24. Positional Hedging seems to be the next good way to trade.
  25. Nifty might Trade between 10920-11060 today.


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