Pre Market Report, May 13, 2015 | Stocks and Commodities

May 13, 2015
Time: 8.25 am

Pre Market Report:

1. I could not write any report for the last few days as I was too busy with some other work.
2. Yesterday the worst day for our markets.
3. First the US markets were down the day before and global cues were not good.
4. Then by 9.15 itself, there was huge selling that brought Nifty down by more than 100 points.
5. Then came GST bill was referred to select committee. So reforms are slowing, GST may not be introduced by APril1, 2016 as planned.
6. Then came news from Austria that monsoon will be bad.
7. Then came the news that there was earthquake in Nepal and the effect was felt in India.
8. So the markets never recovered.
9. Europe also opened very badly due to Greece fear.
10. But after the market hours, Inflation data came below 5% and that is good news for Banking stocks.
11. Along with with low inflation, IIP data also came low and the expectation of rate cut is increasing.
12. Who knows, RBI Governor may cut the rates even by tomorrow.
13. But higher crude prices, commodity prices (due to China stimulus) may not allow RBI Governor to cut rates.
14. Today SGX Nifty is trading around 8170.
15. If 8180 is crossed, which is 200 DMA, there may be some recovery.
16. Though US markets were down, Asian markets are firm.
17. Broadly, Nifty is expected to trade between 8000 and 8400 for the next few days. 
18. Today Nifty should take support at 8120. Resistance will be at 8220.