Pre Market Report, September 10, 2015 | Stocks and Commodities

September 10, 2015
Time: 8.35 am

Pre Market Report:

1. US markets opened more than 200 points higher and closed more than 200 points lower.
2. As I have said earlier, we can be sure of only one thing for the next few days, that the markets will be highly volatile.
3. At least our markets are not swinging that high.
4. Look at Japanese markets, yesterday it was up by 8% and today it is down by 4%.
5. This volatility will kill the traders.
6. Markets are now only for long term investors.
7. Yesterday I mentioned that when markets rise, reduce the position or buy put option for protection.
8. Yesterday it was 100 points gap up for Nifty.
9. Today it is going to be 80 points gap down, if SGX Nifty is an indication.
10. Very difficult to keep stop losses also.
11. S&P has downgraded Brazil, so the effect will be felt in all emerging markets.
12. Out of all emerging markets, India is the only one who imports Oil whereas rest all export Oil, so the impact may not be that high for India.
13. But still, FIIs will sell the Indian shares in order to compensate the losses in other emerging markets. Also when sentiment is down, we will not do well.
14. There was not even a single trading day where FIIs were on the buy side in Cash market in the last one month.
15. After selling 18000 crore in August, everyday they keep selling in Cash market.
16. This is really disturbing, any rise that comes will be purely on short covering by short sellers, there will be no meaningful buy in cash maret.
17. This will go on until the end of next week.
18. After that either markets will continue to fall below 7000 or will continue to rise above 8000.
19. I feel that this expiry is surely not between 7000 and 8000.
20. Either it will be below 7000 or above 8000.
21. When the volatility is low, it is better to buy these options in small quantities.
22. Even if Nifty expires between 7000 and 8000, the loss will not be big.
23. Today Nifty may open gap down by about 80 points and then markets may stabilise at lower levels, say, around 7700 to 7720.
24. Afternoon, markets will make some sharp move, either upside or downside, depending on whether FIIs sell more or DIIs buy more.
25. Yesterday FIIs have sold for about Rs 490 crores and DIIs have bought for about Rs 1200 crores.