Pre Market Report, November 5, 2015 | Stocks and Commodities

November 5, 2015
Time: 8 am

Pre Market Report:

1. US markets closed marginally negative after rising for the last two days.
2. In fact, US markets were positive in the morning, then came Janet Yellen's comment that rate hike in December is 'live', so the markets fell but marginally.
3. Some Asian markets are ignoring this and trade in Green due to their local cues.
4. So Asian markets are mixed.
5. Our markets have been under performing the world markets for the last 8 trading sessions.
6. Traders will like to close the positions by the end of today as markets are expected to open a big gap up or gap down tomorrow morning.
7. Yesterday I said if Nifty future does not fall below 8120, then it can close between 8180 and 8220 today.
8. Buy yesterday that level was broken and Nifty future fell drastically, so we need to forget the level of 8180-8220 level.
9. As I said earlier, the only good thing yesterday was that India VIX did not shoot up despite huge moves the second part of the trading session.
10. But we are just 35 points higher than the swing low of 7995.
11. There is every possibility that today it may be broken.
12. At the same time, short covering rally is also not ruled out as our markets have been falling for the last 8 days.
13. In fact both can also happen, Nifty future may break 7995 in the morning and short covering rally at the end of the day.
14. Today's trade is just like expiry day trade and difficult to predict.
15. India VIX needs to be watched carefully in order to predict tomorrow's opening levels.
16. Cipla and Tata Steel will be in focus ahead of their results.
17. Markets seems to be factoring in negative news from Bihar results.
18. Ans that is good as markets may not fall much tomorrow.
19. But anyway I expect more than 100 points gap up or gap down tomorrow.
20. We will give better picture in the evening report.
21. Today Nifty future is expected to trade in a wide range of 7980 - 8120.