Pre Market Report, March 11, 2014 | Stocks and Commodities

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Pre Market Report
Time: 8 am

Pre Market Report:

1. US markets fell initially but recovered later and Nasdaq and S&P 500 closed flat and Dow closed marginally lower.
2. Data coming out of China has been bad and China index fell below 2000 once again.
3. In 2008, Nifty fell from 6300 to almost 2000 but now recovered completely and trading at all time high.
4. But China market in 2008, fell from 6100 to just below 2000 and it has not recovered since then, today it is again below 2000.
5. Other than China, all Asian markets are up.
6. SGX Nifty is almost flat.
7. Huge short is being built in frontline banking stocks like ICICI Bank, HDFC Bank and Axis Bank.
8. This is evident from the fact that future prices are lower than spot prices.
9. Any further buying in cash market will lead to short covering in futures and that will trigger another rally.
10. That is why VIX is also up and one week before Bank Nifty was trading around 10700, now it is 12200 and 13500 Call is trading at Rs 25. What a change is one week?
11. Markets are likely to consolidate with high volatility for another one or two sessions and may go for another wave of upmove.
12. Today Nifty future should find support at 6520 and resistance at 6600.