Pre Market Report, February 16, 2016 | Stocks and Commodities

February 16, 2016
Time: 8.30 am

Pre Market Report:

1. US markets were closed yesterday, so no cues from US.
2. But Asian markets are building onto the yesterday's gain.
3. Particularly China market is doing very well.
4. Crude prices are up on the back proposed meeting among OPEC members and Russia.
5. SGX Nifty is trading around 7215.
6. Nifty opening above yesterday's high is a big positive.
7. But only disturbing factor is FII selling in Cash market.
8. High quality shares did not go up yesterday.
9. What happens normally, after a big move, markets will go for consolidation for two to three days.
10. But this time that may not be the case.
11. Either Nifty will fall towards 7100 or will rise towards 7300 within two to three days.
12. It all depends on whether FIIs are going to sell heavily or not.
13. Nifty is expected to spend some time between 7180 and 7220 and then will break out of the range.
14. In case 7220 is broken, then Nifty will move towards 7300 to 7320 levels which will be 61.8% retracement of the recent fall.
15. In case, 7180 is broken on the downside, then Nifty will move towards 7100 - 7080 level.
16. First half an hour of trade and last one and half hour of trade are very important today.
17. So volatility is here to stay for some more time.
18. We need the watch the price movements of FII heavy stocks like HDFC, HDFC Bank, Infosys, TCS, ITC etc.
19. If there is any significant price move in these stocks, then Nifty will break out.
20. It will be good if markets consolidate for a day or two.