Pre Market Report, November 4, 2015 | Stocks and Commodities

November 4, 2015
Time: 8.15 am

Pre Market Report:

1. US markets closed firmly in Green for second day.
2. Crude was up by 3% and that helped Emerging markets like Brazil, Russia.
3. Asian markets are also trading in Green.
4. SGX Nifty hit a high of 8159 and now trading around 8150.
5. This is very important due to many reasons.
6. First, markets fell for 6 days and 7th day it closed just 15 points higher.
7. Second, there is an important event on Friday and hence there may be some short covering by the end of Thursday.
8. Third, yesterday FIIs were on the buy side in F&O in all segments which is a rare event.
9. Fourth, as expected DIIs re matching the FII selling in Cash market as the markets are trading at the lower end of the trading range.
10. Moody changed the outlook for Banks from Negative to Stable, Ficth announced that Banks NPA will see gradual decrease. This kind of good news have been ignored by the market in the last few days.
11. Fifth, most corporate results are over and punishment to some stocks seems to be over done.
12. Sixth, open interest in 8000 Put did not go down much despite Nifty trading closer to 8000.
13. The only worry is the India VIX which keeps moving higher.
14. If Nifty future opens around 8150 and does not fall below 8120, then it can move to the range of 8180-8220 by tomorrow, if there are no negative global cue.
15. Then we can expect the range 7900 to 8500 due to the Bihar news.
16. If Bihar election goes in favour of BJP, then Nifty will break the recent high of 8350.
17. If not, Nifty might take support in the region 7900-8000.
18. Maruti and Ashok Leyland will be in focus as they may be added in MSCI India index.
19. Ashok Leyland, IDBI Bank, Reliance Infra are some of the corporate results due today.
20. China services PMI came higher at 52 compared to 50.5 last month. Our Service PMI will be out today by 10.30 am today.
21. In the last 7 sessions markets closed at a lower level than the opening level everyday, we have to see what happens today.
22. Nifty future may trade between 8080 and 8180.

DISCLAIMER

The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. No representations can be made that the recommendations contained herein will be profitable or that they will not result in losses. Readers using the information contained herein are solely responsible for their actions. Readers are advised to consult their Financial consultants before taking any position. The analysis is partially Technical and partially Fundamental. The views expressed are the Author's own views.