April 23, 2015
Time: 8.25 am
Pre Market Report:
Time: 8.25 am
Pre Market Report:
- Global markets have been moving higher day by day, yet our markets sold off mainly due to FII MAT issue.
- Finally, Govt. clarified that there will be no MAT for Mauritius and Singapore based FIIs due to Double Tax Avoidance treaty.
- This made short sellers to cover their shorts as most FIIs are from these two countries.
- Poor monsoon forecast also brought the markets down yesterday afternoon.
- Then the MAT issue news came and hence the intraday move was very sharp. Nearly 200 points in Nifty and 550 points in Bank Nifty.
- Yesterday also US markets closed positive.
- Every one has forgotten about US rate hike or Greece problem. Most world markets are trading at year high now.
- So there is every possibility, our markets will also move significantly higher to 8600 to 8700.
- FIIs have sold both in Cash and F&O markets.
- It was just short covering by local operators that took markets higher.
- Now that the news has more clarity, FIIs may start covering their shorts in F&O and may start buying from Cash market.
- Also markets have found double bottom at around 8275. Techically, this bottom should be the bottom for near term. If markets sustain the up move for one or two more days, then we can be sure that the bottom is in place.
- If markets hold on to yesterday' gain and add little more gain, then Nifty may even go to 8800 to 8850 levels by the end of expiry.
- SGX Nifty is already trading about 30 points higher.
- Today's and tomorrow's markets close will be very crucial to determine the trend.
- Yes Bank did not fall after the results, the first stock to close positive after the results.
- Top stocks like Axis Bank and ICICI Bank have lost more than 20% offers good opportunity for long term investors to enter the private sector banking space.
- One may start buying in intraday dips for the next one or two days.
- Nifty may find some resistance around 8550.
- Support will be at 8420.
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