Pre Market Report, March 14, 2014 | Stocks and Commodities

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March 14, 2014
Time: 8.15 am

Pre Market Report:

1. US markets opened positive but fell drastically once the news broke out that Russia is conducting military exercises near Ukraine.
2. Already there was a bad economic news from China (Low Manufacturing Index), so the compond effect, DOW lost more than 300 points intrday.
3. China H shares (Chinese shares listed in Hong Kong) lost more than 20% from the peak attained in December 2013 and entered into bear market. A loss of more than 20% is considered as bear market.
4. What is happening in China is actually good for India in the medium to lone term as commodity prices will be lower and that is good for India. 
5. But in the short term, sentiment will bad and that will affect our markets.
6. There are rumors floating around that China may for a stimulus.
7. If that happens short covering rally will set in in all markets.
8. Nifty future should take support at 6480 but due to panic it might go down to 6460.
9. Resistance will be around 6540.
10. Friday after noon trade will always through some surprise.
11. So the range will hold at least in the first half.
12. Yesterday Banking stocks did not fall, so today they may fall.