Pre Market Report - Make or Break day | Stocks and Commodities

January 8, 2015
Time: 7.40 am

Pre Market Report - Make or Break day

1. Yesterday I have given my views about yesterday's trade and today's outlook.
2. At that point of time DOW was down only about 125 points.
3. But DOW closed about 400 points at the end of the day.
4. Today morning PBOC fixed yuan rates higher.
5. Also regulators in China decided to do away with cosing of exchanges when index falls by 7%.
6. This means that index can fall by any percent and still continue to trade until the end of the day.
7. So the whole world is watching how China markets are going to react.
8. Just 30 minutes into the trading, China fell by 2% after opening about 2% higher, and now recovered 2% and trading almost flat. (Now the time is 7.30 am)
9. So this is a swing of 6% in half an hour trade which is very huge swing.
10. SGX Nifty hit a high of 7607 and then fell to a low of 7519, a swing of more than 80 points in less than an hour, now trading at 7559.
11. This kind of volatility happens either at the lower end or at the upper end of the trading range.
12. So we will be happy if this is the lower end of the trading range.
13. People expect Nifty to trade between 7500 and 8300 for the next six months.
14. Yesterday Sensex hit 52 week low, though Nifty did not.
15. Today during the market hours, if China markets fall, then Nifty will also hit 52 week low.
16. Whether it will close below 7540 or not, it is a big question.
17. As I have mentioned yesterday, markets may show some sharp moves towards the end of the day.
18. So be ready for a roller coaster ride.
19. Faint hearted people, stay away from the markets.
20. Traders, be careful of your stop losses, ther eis every possibility that your stop losses will be triggered in a matter of few minutes whether you go long or short.