Pre Market Report, August 12, 2015 | Stocks and Commodities

August 12, 2015
Time: 8.40 am

Pre Market Report:

1. Yesterday I could not write 'Pre Market Report' due to some personal reasons.
2. Markets fell significantly the day before yesterday after 3 pm when Finance Secretary said the GST bill may not go through.
3. Then came yesterday morning that China devalued its currency.
4. Still markets in Asia did not react too much yesterday.
5. But US markets closed significantly lower, falling for 7 out of last 8 trading sessions.
6. Asia is reacting today, most Asian markets are significantly lower.
7. Asian currencies are also weakening.
8. SGX Nifty is trading around 8425, which is a big gap down which may trigger some panic.
9. Also the opening price will be lower than 50, 100 and 200 DMA, which may trigger more selling.
10. Today is the last chance to push the GST is Rajya sabha as the bill has to be placed in Lok Sabha tomorrow, the last day of this monsoon session.
11. I have been saying that we are in the long term consolidation phase between 7900 and 8100.
12. On Jan. 1, Nifty was around 8300, after nearly 8 months, now it is around 8400. So nothing changed much at macro level.
13. Only stock specific movements were there with Auto, Pharma and Pvt. sector banks doing well and metals, real estate, power and oil sectors loosing ground.
14. Markets are likely to come under pressure and Nifty is likely to take support at 8400 today.
15. There may be some short covering rally if GST bill is passed in Rajya Sabha.