Pre Market Report, March 16, 2015 | Stocks and Commodities

March 16, 2015
Time: 8.30 am

Pre Market Report:

1. US markets fell on Friday. But it was one day up and one day dow.
2. Europe closed higher as that is going in a different way due to ECB stimulus.
3. Asian markets are marginally up.
4. SGX Nifty is down by about 20 points now. But was nearly 60 points down on Friday night.
5. As long as Nifty is not breaking Friday's low, there are chances of slight bounce back.
6. One can expect a slight bounce back as FIIs have bought heavily in F&O markets on Friday. Even assuming that is was short covering, still we may conclude that this is an attractive level to close the short positions which means that we are somewhere near bottom for short term.
7. These people will again short only on a bounce back.
8. No Institutional selling in cash market, FIIs buy heavily in F&O markets, Asian markets are marginally up. So these factors may mke sure that Nifty does not fall much from here.
9. Moreover, last week fall was the worst fall in 2015. So markets may consolidate.
10. Even after such a panic selling, India VIX s still hovering around 15 which is about 25% lower than the level few weeks before.
11. People expect Nifty to expire around 8700 plus or minus 100 points and Bank Nifty to expire around 19000 plus or minus 300 points.
12. But it is too soon to predict as Fed announcement is on the way.
13. But the negative news about US interest hike seems to be priced in. (Otherwise why Bank Nifty should fall nearly 2000 points in the last few sessions)
14. This week trading is crucial. This week will be a make or break week. In addition to Global cues like Fed announcement, local cues like three bills (land acquisition, Coal and Mine) to be passed in parliament, Rahul Gandhi issue rocking the parliament, etc.
15. Today Nifty is expected to trade with volatility between 8620 and 8720.