November 9, 2015
Time: 8.30 am
Pre Market Report:
Time: 8.30 am
Pre Market Report:
- Asian markets are mixed with China, Hong Kong, Japan are up and others are down.
- But markets in Asia did not react violently for the Jobs report from US.
- Now there is 70% chance of rate hike in December.
- Here it is all about BJPs worst performance in Bihar.
- No exit poll predicted such a bad results for BJP.
- SGX Nifty after hitting a low of 7792 now trading around 7830.
- Nifty future trading band of 7780 - 7820 is very important.
- Either markets should stabilise around this level or should bounce back.
- Breaking 7880 level may pave the way for another low below 7500.
- To some extent BJPs loss is already factored into the prices.
- So the price correction may not be severe but time correction may be severe.
- Markets will react to the below estimated results from Tata Motors, Sun Pharma, Auro Pharma etc.
- Today may be the knee jerk reaction but tomorrow's trade will be more important to decide the trend.
- We have to see how much FIIs are selling that will be known by today evening only.
- We also have to see how much DIIs are willing to support at this level.
- If the India VIX goes down, FII selling is not more than 1000 crore and DII buying is roughly matching FII selling, then markets may consolidate and may bounce back.
- If India VIX shoots up by the end of the day, FII selling is more than 1000 crore and DII buying is less than 500 crore then the selling will continue.
- Those big ticket sellers will time the market, may choose to sell in the last one hour of tomorrow's trade.
- Even if markets bounce back, it will be difficult to cross 8250 as US rate hike will continue to haunt the markets all over the world.
- So one can consider selling 8200 and above Call options in Nifty, 8300 and above Call options in December expiry.
- Bank Nifty, one can sell Call options of 18000 and above.
- Nifty future may take support at 7780 and resistance will be at 7900.
Comments
Post a Comment