Pre Market Report, April 24, 2015 | Stocks and Commodities

April 24, 2015
Time: 7 am

Pre Market Report:

1. I am writing this report at 7 am, too early, as I am leaving for Singapore at 8 am. First time in last 6 years, I will be missing the market action today, as my flight is a day flight.
2. It was a surprising market action yesterday, the kind of volatility was not expected.
3. After factoring in all negatives, after clarity on MAT issue, yesterday India VIX shot up by 7.5% which was not expected totally.
4. FII selling seems to slowed down after many days of huge selling.
5. Yesterday they have sold for Rs 266 crores. But DIIs have bought for Rs 560 crores which is almost double of what FIIs have sold.
6. For US markets and many other markets, today's close will be year high close as well as multi year high.
7. Nasdaq at 20 year high, Japan at 20 year high, China at 7 year high etc, but India is almost 10% lower.
8. If there is any positive trigger, then India will catch up.
9. Yes Bank shot up by about 7% on back of good results and FII limit increase to 74% from 49%. The action may continue today also as Yes Bank is planning ADR issue.
10. Yes Bank was the only stock to close positive after the results. All other stocks closed negative, including HDFC Bank yesterday.
11. Today Infosys will declare results at 1.45 pm. That will bring volatility in the afternoon.
12. PSU Banks fell the most yesterday, but that was compensated by Yes Bank.
13. ICICI Bank looks very weak as they are not getting good valuation for their Insurance business.
14. Steel companies shot up as BofA came out with good report for steel companies.
15. GST bill will be placed in Parliament today. That is a key event to watch.
16. As markets moved both ways in the last few days, today's last two hours of trade is likely to be highly volatile.
17. The trend will be decided by the last hour of trade, if the trend is up, then the trend will continue next week and if markets fall in the last one hour, then the fall will continue next week also.
18. SGX Nifty is trading around 8420. So markets may start with positive bias, then will become volatile.