Pre Market Report, September 18, 2015 | Stocks and Commodities

September 18, 2015
Time: 8.50 am

Pre Market Report:

1. US has chosen not to hike rates.
2. In fact US has been market friendly since 2008 crisis.
3. But this time everyone wanted the hike as the volatility will subside.
4. But the uncertainties will go on until December.
5. Markets are likely to be choppy for the next few months.
6. SGX Nifty hit a high of 8056 yesterday before the Fed announcement.
7. But after seeing global reaction to the Fed news, it is now trading around 7975.
8. Still this is about 75 points higher than the closing price here on Wednesday.
9. Even on Wednesday market seems to know the outcome of Fed and hence VIX fell nearly 8%.
10. Nifty was trading at 7900 and the highest open interest was at 7800 Putoption which shows the confidence of the market participants.
11. Highest open interest in Calls was at 8200.
12. So Nifty is likely to trade between these two figures 7800 and 8200 until the expiry.
13. Now the global news is gone, market participants will try to build long positions on every dip by expecting RBI to cut rates by the end of September.
14. So the downside would be limited.
15. At the same time, our markets can not go up all the way alone as global markets will make FIIs continue to sell in cash markets.
16. So upside will also be limited.
17. Today Nifty will face resistance at 8000.
18. Support will be at yesterday's close of 7900.
19. Asian markets are mixed and so there is no firm global cues.
20. First half an hour will be short covering by short sellers who anticipated fall in our markets, we have to see how markets behave after 10 am.
21. If markets trade above 7950 until afternoon, then there will be more short covering.
22. Nifty has the potential to go to 8200 in case of good short covering by the end of this expiry.
23. Rate sensitives will do well whereas IT and Pharma may under perform the broader markets for the next few days.