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

February 24, 2016
Time: 8.50 am

Pre Market Report:

1. Volatility continue to rule the world markets due to oil prices.
2. Dow had a swing of more than 350 points yesterday night.
3. Asian markets enthusiasm is punctured by China market which fell today.
4. SGX Nifty swung about 100 points while you were sleeping.
5. Yesterday night it was trading around 6970 and today morning at 6.30 am it traded at 7064.
6. Now it is trading around 7030 after China's fall.
7. Expiry day trade is difficult to predict.
8. Markets may go for two way movements.
9. But 7100 will the huge resistance, even if there is any short covering, Nifty may not move above 7100.
10. In February, India is the worst performing market losing 6.5%.
11. China was up by 6%.
12. So compared to China we have under performed by about 12%.
13. Right now every one is bearish and some times markets bottom out only in this kind of situations.
14. I will not be surprised if Nifty shoots up by 10% in March series, it all depends on Budget, GST and global cues.
15. Corporate income tax reduction by 2%, either no change in lone term capital gain tax or staggered rate for long term capital gain along with a cut in STT are the two key things in the budget that can move the markets.
16. There is a news report that Govt. is planning to sell shares of ITC and L&T (both are trading at 52 week low, though L&T recovered a bit) for about Rs 45000 crores by March end.
17. Even a 10% rise in the share price will fetch them 5000 crores extra and that is possible only if they come out with stock market friendly budget.
18. I will be bearish if Nifty breaks 6980.
19. Be ready for another roller coaster ride.