Pre Market Report, February 15, 2016 | Stocks and Commodities

February 15, 2016
Time: 8.15 am

Pre Market Report:

1. SGX Nifty is trading around 7065, so huge gap up will squeeze the short sellers.
2. Smart people have squared up their shorts on Friday.
3. That is why the data shows huge buying in index futures by FIIs.
4. Nifty 6900 level is very important in many respect.
5. First, there was a gap up opening in 2014 from this level, technically that gap has been filled.
6. Second, Nifty 6900 level is the 200 Weekly moving average.
7. Third, Nifty 6900 level is the 61.8% Fibonacci retracement of the bull run from 2013. 
8. So when Nifty hit that multiple support, smart short sellers have squared off their positions.
9. Huge gap up of more than 100 points will wipe out weak short sellers now.
10. Dow futures are trading more than 100 points.
11. China did not fall as much as expected.
12. The short covering rally may extend up to 7200, which is the 50% retracement of fall form 7500 to 6900.
13. It may not happen in one day, may be in a period of two to three days.
14. If 7200 is taken firmly, then the next target will be 7320 which is appx. 61.8% retracement.
15. But markets will move with volatility.
16. Bank of Baroda will be under pressure as it has declared largest ever loss by a bank in Indian history.
17. Sun Pharma is likely to do well due to strong results.
18. India VIX is likely to crash and hence Put option premiums.
19. We need to see how Bank Nifty performs.
20. There will be meaningful recovery only if Bank Nifty performs well.