Pre Market Report, May 20, 2015 | Stocks and Commodities

May 20, 2015
Time: 8.20 am

Pre Market Report:

1. Yesterday again I could not write the report due to Sun TV program.
2. But markets traded along the expected lines.
3. Markets are likely to consolidate further as I have mentioned earlier.
4. But Nifty crossing 8400 was a pleasant surprise.
5. Though markets fell in the first half of May, there are some positive triggers now.
6. One, FIIs have slowed down or stopped selling in the cash market.
7. Second, DIIs are buying more than what FIIs are selling, displaying conviction in the long side of the market.
8. Third, US markets are hitting all time high almost every day.
9. Fourth, global bond jitters are subsiding.
10. Fifth, technical factors are supporting the markets, markets are firmly above 200 DMA.
11. Sixth, RBI rate cut hope is driving Banking stocks higher.
12. Seventh, key results from SBI and ITC on Friday.
13. But there are some negative also, today US Fed minutes may reveal something about rate hike in September.
14. Greece issue is still not resolved.
15. FIIs long-short ratio also favors the bulls.
16. The first target for this up move is 8550 which is the 50% retracement of fall from 9100 to 8000.
17. SGX Nifty trading around 8390, FIIs have bought in cash market despite 100 point intraday fall in Nifty yesterday.
18. Bank Nifty is expected to move towards 19000 towards the end of this month.
19. Today Nifty is expected to trade in yesterday's range.