Pre Market Report, February 24, 2016 | Stocks and Commodities

February 24, 2016
Time: 8 am

Pre Market Report:

1. US markets closed lower and it was a disappointment for bulls.
2. In fact, Dow future was slightly positive just before US markets open.
3. US markets were up for four days and fell yesterday and gave up one day's gain.
4. But our markets were up for 4 days and fell yesterday but wiped out almost entire gain made in 4 days.
5. India now is the second worst performing market in the world after China since January 1, 2016.
6. Continuous selling in HDFC and HDFC Bank and other FII heavy counters, news about Long Term Capital Gains Tax and all sorts of rumour about Budget are the reasons.
7. Auro Pharma is a FII heavy counter, this share was trading closer to Rs 900 just two months back, closed in Red despite such a huge positive news that it will be included in Nifty.
8. Though US markets fell, Asian markets are mostly flat.
9. Even European futures are showing slight positive tick. US future are also showing slight positive tick.
10. But things change within a matter of few minutes now a days.
11. Yesterday evening between 5 pm and 6 pm, Crude prices were up by 4 to 5% and then down by the same amount.
12. SGX Nifty is trading almost flat at 7105 as of now.
13. FII figures both in Cash and F&O are not as bad as expected.
14. The day before yesterday Nifty 7200 Put added 9 lakh shares in open interest so markets fell when those positions came under threat.
15. So yesterday's fall was technical in nature.
16. Due to yesterday's panic, Nifty 7100 Call added 13 lakh shares in open interest.
17. So there is every posibilty the reverse may happen today or tomorrow.
18. If for some reason if Nifty rises by 50 points, it will rise by another 50 points just by short covering.
19. Whether the first 50 points rise will come or not is a billion dollar question.
20. Even if that happens, it may happen only in the afternoon, by then due to time value option premiums would have gone down giving buffer to option writers.
21. So be ready for another day of volatile trade.
22. India VIX is at the highest point in the last one year, so any thing can happen.