Pre Market Report, January 21, 2016 | Stocks and Commodities

January 21, 2016
Time: 8.20 am

Pre Market Report:

1. When our markets closed here at 3.30 pm yesterday, Dow futures were down by about 300 points.
2. But when markets opened there, Dow fell more than 500 points and crude crashed by another 3%.
3. Yesterday night, SGX Nifty closed at 7265 at 11.30 pm Indian time.
4. But Dow recovered half of the losses in the final hour of trading.
5. Crude also recovered.
6. That brings some positive signal to Asian.
7. China also fixed its currency value slightly higher.
8. SGX Nifty is trading around 7365, which is 100 points higher than the close in Singapore at 11.30 pm yesterday.
9. So that is the kind of volatility we are facing.
10. We do not know whether this recovery will last until the end of the day or there will be some severe selling in the second half of the trading session.
11. What is the kind of fear the markets are facing? There are only 5 more trading sessions for this expiry, 500 points down in Nifty, 6800 Put option trading actively and has more than 20 lakh shares in open interest.
12. Markets have to stabilise for two to three days, then option premiums will crash.
13. It will be good if markets stabilise today and tomorrow.
14. I thought Axis Bank will come under pressure, but some TV channels are reporting that it will rise.
15. Now results are not that important, shorts and short covering will dominate the markets.