Pre Market Report, July 4, 2014 | Stocks and Commodities

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July 4, 2014
Time: 8 am

Pre Market Report:

1. Another day of record close for US.
2. Dow closed above 17000 for the first time.
3. Most Asian markets are up.
4. SGX Nifty is trading at 7762.
5. SGX Nifty is cautious as our markets did not perform well yesterday.
6. But continued strong FII flow, RBI policy reversal regarding ODI, falling crude prices, appreciating rupee, progress in GST talks with states, revival in monsoon activities, strong global cues all points to a sustained rally in our markets.
7. Correction, if any, will be shallow, not a deep one.
8. Every one say that our markets are going up due to high expectation of budget.
9. Even slight disappointment, our markets will correct significantly, according to them.
10. In my opinion, that is not true.
11. If election results and budget are the reasons why we are at all time high, then why most global markets are at their all time high?
12. No election and no budget in thoe countries.
13. Even if BJP had not won, our markets would have rallied after a knee jerk reaction to the elction results.
14. In 2008, we had no problem, then why markets crashed?
15. So global stability, global economic growth are more important than local factors.
16. In my opinion, budget day is going to be like election results day.
17. Expectation is high, which will be met, but markets will not rise significantly by the end of the day, though there could be some intraday spike.
18. That is why we suggest not to buy call options.
19. Let us see what actually happens on Budget day.
20. For today, the range for Nifty is same as yesterday, 7720 to 7820.