Pre Market Report, April 22, 2015 | Stocks and Commodities

April 22, 2015
Time: 8.30 am

Pre Market Report:

1. Another day of huge fall yesterday. This is the 5th day of straight fall. This correction is very fast and furious.
2. Normally bull market corrections are like this only.
3. Global set up is good. Most markets are trading at this year high.
4. Even Sun Pharma's Rs 18000 crore sales has been absorbed by FIIs without any support from DIIs. Goldman Sachs has bought for about Rs 5000 crores and Singpore (through GIC and Temasek subsidiary) bught for about Rs 3000 crores.
5. This fall seems to be the trick by FIIs to force the Govt. to relook at MAT issue.
6. Yesterday, markets fell further when Finance Ministry sources said there will be no compromise on MAT issue.
7. Markets should find bottom somewhere when these FIIs change their mind and start booking profits on their short positions.
8. Yes Bank will come out with results today and that may bring volatility in this counter as well as in Bank Nifty.
9. Yesterday the Bank Nifty was very volatile. Moved up and down by more than 200 points few times.
10. Weaker hands would have been out by this time and hence markets are not likely to fall more severely from here.
11. Yesterday's low is crucial. If that is broken Nifty will head towards last swing low.
12. In the last one month or so, markets fell continuously for 7 days and then rose continuously for 7 days and again fell continuously for 5 days as of yesterday. We have to see how markets close today.
13. WIPRO results were not impressive. So that share may come under pressure.
14. Now the market set up is like this: If results are good, share should fall 2 to 4%. If results are OK, then shares should fall 4 to 6%. If results are bad, then shares should fall 6 to 10%.
15. SGX Nifty is trading in confused manner. Traded between yesterday's low of 8377 and yesterday's (SGX) close of 8412.
16. My view is that our markets should close positive, though marginally, in order for some recovery by this expiry.
17. If today also markets close negative, then downward move will accelerate by the end of this week.
18. Next week, it all depends upon Greece issue and other factors.