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

October 12, 2015
Time: 8.30 am

Pre Market Report:

1. On Friday, US markets closed in Green.
2. Asian markets are mostly up.
3. SGX Nifty is trading around 8230.
4. But all these are irrelevant today.
5. Today's trade in the morning is all about Infosys results.
6. If Infosys results are good and it trades firmly in Green, then markets may break out on the higher side and the target for Nifty on the higher side is 8400.
7. FIIs in F&O are very bullish.
8. There was unwinding in Call options and fresh longs in futures which indicate upside for the markets.
9. Also on Friday, the premium of future over cash Nifty and Bank Nifty fell.
10. Bank Nifty was up by 115 points, but Bank Nifty future was up only 65 points and 17500 Call, which is the nearest Call was up by only 10 points.
11. Similarly Nifty was up by more than 60 points but Nifty future was up by less than 40 points.
12.  Usually this happens when the market is ready to make another up move.
13. On the other hand, if Infosys falls even after good results like IndusInd Bank, then the markets may slide once again below 8200 and this time the correction may set in, which will take Nifty to 8000 to 8100 level.
14. So today's trade is very important.
15. Bank Nifty has been under performing for the last few days, if markets are firm until the end of the day, then there may be some short covering towards the end of the day ahead of IIP and Inflation data to be announced at 5.30 pm.
16. So according to many technical analysts, today's trade is make or break trade.
17. If Nifty closes firmly above 8225 today, then one may sell 8000 Put option which can be squared off when Nifty reaches the target level of 8400.
18. There may be some sentimental negative for Bank Baroda due to 6000 crore money transfer scam.
19. Auro Pharma shot up on Friday after the 300 million issue which I mentioned.
20. Today Maruti may move higher as it has fallen more than 10% and there are some positive news flow.
21. Nifty is expected to trade in a broad range of 8120 to 8300 due to Infosys results.