Pre Market Report, March 9, 2015 | Stocks and Commodities

March 9, 2015
Time: 8.35 am

Pre Market Report:

1. I could not write 'Dalal Street Week Ahead' yesterday as I was travelling and more over I was not well also.
2. US Non Farm Payroll data has come extremely positive and hence markets think US interest rate hike will be sooner than later.
3. The probability of rate hike in June has increased from 18% to 25%.
4. Markets bet that US will increase rates in September if not in June.
5. There is difference in US Non Farm Payroll data and ADP Non Farm Payroll data as one takes only private sector jobs into account.
6. All Asian markets are down.
7. SGX Nifty is trading below 8900.
8. The fall may be severe, more than 100 points in Nifty.
9. But for lone term investors, this kind of fall is good entry point.
10. One should not forget what happened in August 2013. The same kind of news, US hiking interest rates, Nifty fell from around 6000 to 5100, but what happened after that?
11. But this time around we are in much better position in terms of Geo political situation, Forex reserves, economic liberalisation, etc.
12. So in worst case senario we may fall to 8200.
13. Today Nifty future should take support at 8880.
14. Resistance will be around 8980.
15. Europe may not react as much as US due to stimulus from ECB.
16. So markets knee jerk reaction may see Nifty falling 100 points and then Nifty may consolidate around 8900.