Pre Market Report, September 24, 2015 | Stocks and Commodities

September 24, 2015
Time: 8.50 am

Pre Market Report:

1. Yesterday morning, it was all gloom and doom.
2. But I mentioned that there will be a short covering rally due to RBI event either yesterday or today or Monday.
3. It has happened yesterday itself.
4. Europe also supported in the afternoon.
5. US opened higher but fell immediately and closed marginally lower.
6. China has taken some steps to stabilise its currency.
7. So most Asian markets are marginally positive.
8. Japan is down and that is due to three days of holidays there from Monday to Wednesday.
9. Coming to tody's trade here, SGX Nifty is marginally lower at 7820.
10. But since the markets are on holiday in Indonesia, Malaysia and Singapore (in Singapore online trade is open), the volume may be very thin.
11. Due to counter trend for the last two days in India (Day before yesterday SGX Nifty was positive but Nifty fell here, yesterday SGX Nifty was negative but Nifty rose here), people who are trading at SGX are confused.
12. Markets are likely to trade with plus or minus 30 points, between 7820 and 7880 until afternoon.
13. A sharp move, either upside or downside is expected towards the end of the day.
14. Usually markets close lower on expiry day when the markets are in down trend, but today it is difficult to predict because of two things, one tomorrow is a holiday and second RBI policy announcement next week.
15. RBI issued draft guidelines to liberalise ECB norm may be a booster to Real estate and Infra companies.
16. Yesterday, it was an intraday trade, positional trades were very low in F&O.
17. Nifty is expected to expire between 7780 and 7920.
18. If any of these levels is breached during intraday, there will be a sharp move in that direction.
19. But that probability is very low until afternoon, the prbability is low even in the afternoon. But it is difficult to predict the movement on expiry day.
20. In the past, many times, September expiries threw nasty surprises.
21. So it is better to keep strict stop losses on expiry day.