Pre Market Report, January 18, 2016 | Stocks and Commodities

January 18, 2016
Time: 8.20 am

Pre Market Report:

1. Markets have been very volatile for the last three days, it looks today also it is going to be the case.
2. Just look SGX Nifty, it closed at 7380 level on Friday, opened around 7400 today morning, hit a high of 7453 and now trading around 7420.
3. That is the knid of volatility even before our markets open, then what will be the real action here?
4. Crude oil fell once again as Iran sanctions are lifted and now we can expect Iran crude flooding the world which is already facing over supply.
5. That is creating jitters among the Asian markets.
6. China is trying to stem the volatility on the currency front by bringing in new regulations like reserve ratios for offshore yuan, fixing yuan price slightly higher, etc.
7. But the real test is only tomorrow when China declares its GDP and Manufacturing data.
8. Yesterday most Gulf markets fell by more than 5% due to Iran news and the fact that these markets are closed on Friday and Saturday, so they had to adjust to the Friday's fall all over the world.
9. Asian Paint, Kotak and Wipro will declare results today.
10. Markets will be watching Kotak results keenly as Bank Nifty is under firm grip of bears.
11. As of now everything looks negative, but markets sometimes bottom out only on such scenarios.
12. One positive expectation of bulls is that anytime LIC may step in to buy the falling markets, but we do not know when that will happen or will it happen?
13. Until then we should be happy if the rate of fall comes down.
14. Petrol prices cut, so Auto and OMC companies will be in focus.
15. Pharma stocks like Auro Pharma, Dr Reddy will be in focus. Dr Reddy did not fall on Friday despite such a big fall in markets. Auro will be in focus due to US FDA approvals.
16. So be ready for another roller coaster ride.