Pre Market Report, April 21, 2015 | Stocks and Commodities

April 21, 2015
Time: 8.15 am

Pre Market Report:

1. Yesterday markets fell beyond anybody's guess.
2. The main reason is stated as MAT on FIIs.
3. FIIs are selling n huge quantities to show their unhappiness over MAT.
4. Yesterday FIIs have sold for more than 1500 crores in cash market.
5. Other reasons are usual things like China slowdown, Greece issue and bad corporate results.
6. Reliance fell nearly 5% despite strong results. So results is not an issue, anyway nobody expected good results and that has been factored into the markets.
7. China is up by 35% this year and almost all global markets are trading at 7 year high but we are far below 9100 peak.  
8. Bank Nifty is nearly 3000 points lower from the peak.
9. Markets fell for 4 consecutive days.
10. Today Daichi selling Sun Pharma shares worth Rs 18000 crores will be a big problem.
11. Sun Pharma is likely to open gap down by 10% and since it is an index stock, the impact will be felt in Nifty also.
12. Daichi should have sold its stake in installments instead of off loading Rs 18000 crores worth of shares in one go. Anyway they will be the bigger looser in this strategy.
13. They are exiting Indian business after 8 years with a loss of over 500 million dollars.
14. SGX Nifty is almost flat at 8467.
15. There may be some kind of intraday bounce if DIIs start buying, but overall market set up looks very weak.
16. Nifty should take support at 8450 failing which the fall may be severe.
17. Markets look attractive for long term investors.
18. For short term there are no positive triggers. Land bill is another problem.
19. As I am writing this blog, HCL Tech has declared results which are in line with estimates.
20. With strong global cues, not so bad results, the fact that major selling is done, the downside should be limited.
21. At the same time, Sun Pharma share sales for Rs 18000 crores and huge FII selling will limit the upside for the markets.
22. We should be happy if markets trade sideways today as further fall will create panic in the markets.