Pre Market Report, September 23, 2015 | Stocks and Commodities

September 23, 2015
Time: 8.30 am

Pre Market Report:

1. Yesterday markets were trading along the expected lines until afternoon.
2. Then European markets opened mostly positive, German was trading negative, slowly they all started moving down with VW shares falling 20% after 16% fall the previous day.
3. So people started booking profits here as there was another uncertainty today morning, China PMI, was looming ahead.
4. At the time of our close, US futures were down by 275 points.
5. US markets opened around that level but recovered some lost ground to close about 180 points lower.
6. So SGX Nifty was trading more or less flat until 7.15 am.
7. Then came the China PMI at 47, the lowest since March 2009, against the expected figure of 47.5. ( Below 50 means economy is contracting)
8. Then most Asian markets have started falling more.
9. SGX Nifty hit a low of 7700.50.
10. Who would have imagined the Nifty which was at over 8000 yesterday morning at 9.30 am to trade at 7700 today morning at 7.30 am?
11. Everyone was expecting a fall, even I have mentioned yesterday that Nifty will make another bottom before the next meaningful rise. But nobody expected the crash so fast and so sharp.
12. SGX Nifty is trading around 7720 which is again another important support level.
13. The first fall low was 7665, so markets may try test that by tomorrow.
14. We will not be surprised if Nifty expire around that level.
15. Once highest open interest level in Put option (which was 7800 Put yesterday) is broken, the fall is usually severe.
16. Auto sector and Auto ancillaries which have been in the bull grip for the last two years coming under pressure.
17. As usual Metals will continue to fall due to China factor.
18. So it all gloom and doom now, but any time the hope of RBI rate cut may set in and one short covering rally will happen.
19. But whether it is going to happen today, tomorrow or Monday (Friday is a holiday), it is a million dollar question.
20. Here I mention again that Nifty is likely to trade in the range of 7400 and 8100 with huge volatility for the next three months.