Pre Market Report, June 1, 2015 | Stocks and Commodities

June 1, 2015
Time: 8.40 am

Pre Market Report:

1. US and European markets closed lower on Friday due to Greece jitters.
2. Asian markets are down except China and Hong Kong.
3. China PMI data came better than expected and lifted sentiment in China and Hong Kong.
4. There was a huge buying by FIIs on Friday.
5. So it is reasonable to assume that Nifty has made double bottom at 8000.
6. But markets are likely to be volatile this week as two important events, RBI policy and Greek deadline of June 5 for loan repayment to IMF, play very crucial role in deciding the trend of the market.
7. Nifty will face first resistance at 8550 and second resistance at around 8700 this month.
8. On the downside, first support is at 8200 and the next support is at 8000.
9. One can consider selling 8000 Put option and 8800 Call option to capture this range bound trade.
10. If you are taking position based on this, better understand the risk and reward associated with this strategy.
11. Auto sector will be in focus as monthly sales data will be out today.
12. SGX Nifty is trading about 30 points lower due to global cues.
13. But it will recover in the second half of the trade as RBI policy will take centre stage.
14. L&T is likely to react negatively to its results.
15. Nifty future is expected to trade between 8420 and 8520.