Pre Market Report, February 2, 2016 | Stocks and Commodities

February 2, 2016
Time: 8.45 pm

Pre Market Report:

1. US markets erased most of the losses and ended mixed.
2. Nasdaq was up while both Dow and S&P 500 ended down.
3. Most Asian markets are down.
4. But China markets are up and Hong Kong has also turned positive slowly.
5. SGX Nifty is trading with slight positive bias.
6. Yesterday interestingly, FIIs were net buyers in Cash market while DIIs were net sellers.
7. FIIs have bought index options in huge quantities.
8. They have bought more Call options than Put options.
9. As we are approaching budget, there may be some speculative move.
10. That could be one of the reasons for option buying.
11. Today RBI policy will be the key event to watch.
12. Though nobody is expecting any surprise from RBI, Raghuram Rajan has the habit of doing surprise things.
13. As long as China markets do not fall, the positive bias may continue.
14. FIIs buying in both Cash and F&O markets will deter the short sellers.
15. After the RBI policy, VIX is likely to go down.