Pre Market Report, October 17, 2014 | Stocks and Commodities

October 17, 2014
Time: 8.25 am

Pre Market Report:

1. Yesterday, another day of huge swing for US markets.
2. First in 2008, then in 2011, now in 2014, every three years huge volatility.
3. Europe also the same, crashes in a matter of few seconds and rises also in a matter of seconds during intra day trade.
4. US markets ended mixed after wiping out all the losses.
5. So Asian markets are marginally positive after many days.
6. SGX Nifty after hitting a high of 7829.50, now trading around 7810.
7. Spot Nifty has to close above 7800 in order for our markets to be bullish.
8. If it closes above 7800, then we can take yesterday's fall as aberration or knee jerk reaction to Global factors.
9. Crude oil prices are low, Inflation is heading south, BJP likely to gain majority in state elections, corporate results are above expectation so far, PM making changes in Finance ministry and appointed Arvind Subramaniam as Chief Economic Advisor indicating the economic reforms ahead, all these are favorable for our markets.
10. Nothing negative for India except negative global cues and as a consequence FII selling.
11. Despite huge selling by FIIs, our markets fall was much lower compared to many other markets which indicates the strength of our market.
12. Today markets are likely to trade with positive bias until Europe opens in the afternoon.
13. If there is any panic in Europe once again, our markets will react.
14. Since the two days of panic in Europe and US would have wiped out the traders, there should be no more panic in those markets.
15. Today Axis Bank will declare results and that will affect Bank Nifty.
16. Yesterday after markets close, TCS declared results which was not so bad but missed analysts expectation and Hero Moto Corp declared very good results. So Auto and IT will react to these results.
17. Nifty future will face resistance at 7840.
18. Ahead of week end, election results on Sunday, possibility of diesel price reduction over the week end, traders will not like to carry positions and likely to square off their positions.
19. That may trigger a short covering rally in the afternoon, provided Europe markets support.
20. So today's trade will be an interesting one.