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

February 16, 2016
Time: 7.30 am

Pre Market Report:

1. US markets closed higher.
2. Usually the trend of a market will be decided by the trend of the trade in the last one hour.
3. So by going that, US markets are stabilising at this level, any fall during the first half of the session, either due to global cues or due to any negative data, has always been bought into in the last one hour of the trade.
4. Yesterday also, Dow opened only about 50 points higher but closed at 222 points higher.
5. But Asian markets are not that good as Asia ran up in the last two days.
6. SGX Nifty is trading higher by about 45 points.
7. Due to huge FII selling in Cash market, Nifty may not move above 7200 until the end of this week.
8. In fact Nifty may be stuck in the region 7000 - 7200 for many days.
9. But any prediction in this kind of high volatile period may go wrong even within a day.
10. Markets are becoming too sensitive to news flow, yesterday SBI Chairperson said there will be more NPA in the next quarter, stock fell more than 7% and that share was the top loser in both Nifty and Sensex.
11. So we hope Nifty does not break 7000 on the downside.
12. Continued trouble in stock market will make people to stop SIP and in that case further fall will be severe as DIIs will not be able to support the markets.
13. Now it is just the inflow slowed down to SIP.
14. In case if there is any redemption pressure, the fall be more severe.
15. Hope that do not happen.