Pre - Market Analysis for Jan 7th, 2020
Indian Stock Market - Senate Belongs to the Democrats! Global Markets are Up Amid Violence at the US Capitol
Trends on SGX Nifty indicate a positive opening for the index in India with a 74 points gain.
Global Data points:
The Dow Jones Industrial Average closed 437.8 points higher, or 1.44%, to 30,829.4, the S&P 500 gained 21.28 points, or 0.57%, to 3,748.14 and the Nasdaq Composite dropped 78.17 points, or 0.61%, to 12,740.79.
Nasdaq slided more than 200 points when our markets closed, but
Nasdaq futures recovered after trading hours. Primarily because if Democrats come to power, then the taxes on the companies would be increased. This would affect the IT giants(FAANGS).Investors remained defiantly bullish in early Asian trade with S&P 500 futures up 0.3%, Japan’s Nikkei 225 rising 1.24% and the S&P/ASX 200 1.25% higher.
Highly disturbingly, supporters of US President Donald Trump stormed the US Capitol (Parliament) and disrupted electoral count on Wednesday. A woman was shot and killed inside the US Capitol. Washington’s mayor instituted an evening curfew in an attempt to contain the violence.
In an unprecedented step, Facebook and Twitter suspended President Donald Trump from posting to their platforms on January 7 following the storming of the US Capitol by his supporters.
Oil prices were steady on Thursday after supporters of President Donald Trump stormed the U.S. Capitol, with investors focusing on the likelihood of tighter supplies after Saudi Arabia unilaterally agreed to cut output.
Indian Data Points:
NIFTY formed a red candle after 10 consecutive green candles. There was a steep intraday fall following mixed signals coming in from the US regarding the Georgia elections. Later NIFTY climbed back up and closed at 14,146.
Bank Nifty opened above 31,770 and was much more bullish than NIFTY and ended the day with gains. When it moved down, as expected, 31,500 acted as a support.
Yesterday was different. FIIs net sold shares worth Rs 483.64 crore, while DIIs net sold shares worth Rs 380.41 crore.
US markets, except NASDAQ, closed in the green. Europe was highly bullish, with FTSE closing 3.47% up! Asian markets are also trading higher. SGX NIFTY is trading higher at 14,272, which is nearly 100 points higher, indicating a gap up opening in the Indian Market.
Maharashtra cabinet clears proposal to cut Govt. levies on real estate by 50% until Dec 31, 2021 - This is bullish news for real estate stocks - like builders(Shoba), cements(ShreeCements), paints(AsianPaints), etc. [I’ll be buying AsianPaints/ShreeCements in any dips]
Next logical resistance for BankNifty will be previous all time, around 32450 - 32500 levels.
Highest Call Open Interest at 14,500, followed by 14,200. Highest Put Open Interest at 14,000, followed by 14,100. The setup looks very bullish.
Tata Sons tendered shares worth Rs 9,997 crore of Tata Consultancy Services (TCS) during the company’s Rs 16,000 crore-buyback offer that concluded recently. [I am long TCS].
Reliance shares fell more than 2% as the company finds itself in the middle of farm protests.
Shares of ONGC gained more than 2% along with GAIL shares(up more than 3.5%) after yesterday’s announcement of the pan-India gas pipeline.
SAIL is under the F&O ban for January 7.
I’ll wait for the market to show me sign of where it is moving, considering for the first time both FII/DII have been sellers and today is expiry.
I do hope you all enjoyed, what a great day time to be a Trader/Investor. Hope you all are having a great morning/evening where ever you are. I do hope you are richer.
Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. From time-to-time I may post my trades in this newsletter. I’ll always disclose when this is the case. This newsletter is not tax advice. Talk to your accountant. Do your own research.