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

November 18, 2015
Time: 8.25 am

Pre Market Report:

1. US markets closed mixed and awaiting the Fed minutes for direction.
2. Asian markets are also mixed.
3. SGX Nifty is trading around 7825.
4. Upside will be limited due to huge selling by FIIs.
5. At the same time DIIs buying at the lower levels will limit the downside also.
6. So markets will be choppy in a narrow band.
7. I expect Nifty to trade between 7700 and 8000.
8. I am still holding Nifty 7900 Call option which I sold for about Rs 65.
9. Yesterday Banking stocks lost momentum.
10. Axis Bank fell more than 10 rupees intraday.
11. Baking stocks along with IT stocks limited the upside.
12. Yesterday's high of 7880 will be the resistance for Nifty future.
13. Support will be at 7780.
14. More interesting will be the Bank Nifty which has the tendency to move violently towards the end of expiry.
15. As long as Bank Nifty future does not fall below 17000, the markets will not fall below 7780.
16. Yesterday it was just a profit booking in Banking stocks, Bank Baroday was up form Rs 145 to Rs 178 in the last few days, came under selling pressure.
17. India VIX fell by more than 5% yesterday and that is a good news for option sellers.
18. India VIX closed below 17.
19. Gold fell to 6 years low in international markets.
20. Low prices Gold and Crude are positive for India in the medium to long term.
21. 7th Pay commission report will have positive impact in consumer discretionary sectors.
22. Auto sector will be the major beneficiary.
23. I remember all my lecturers bought two wheelers after 5th Pay Commission and all of them bought A segment 4 wheelers after 6th Pay Commission and after 7th Pay Commssion, they may buy B and C segment cars.