Pre Market Report, February 8,2016 | Stocks and Commodities

February 8,2016
Time: 8.15 am

Pre Market Report:

1. US markets closed drastically lower on Friday.
2. But the impact is not big in Asia.
3. In fact, Nikkei has wiped out entire loss of more than 200 points today morning and trading in Green now.
4. US future are also trading slightly positive now.
5. SGX Nifty is trading around 7480.
6. I thought, Rocket launching by North Korea will have negative impact in world markets.
7. But markets have ignored this event.
8. Even South Korea is trading positive.
9. Crude oil is trading slightly positive.
10. As long as Crude is not falling and Dollar index is not rising, markets will be OK.
11. Corporate results have been good over the weekend.
12. Jet Airways profit rose by 700%.
13. So stock specific moves will continue.
14. Last hour of trade is very important as we have to see how Europe opens and trades and ahead of GDP data today evening, what traders do.
15. On Friday though FIIs have sold for more than Rs 600 crores, there are few positive things.
16. First, markets were up with huge volumes.
17. Second, there was delivery based buying of Rs 450 crores in ICICI Bank and Rs 250 crores in Axis Bank.
18. So the rise was not only due to short covering, there was fresh buying also and that is a good news for bulls.
19. Even technically, Bank Nifty has made double bottom.
20. This week a lot PSU Banks declare results, PNB, BOB and SBI being very important.
21. So short sellers may book profits ahead of the results and then stocks will move depending on the results.
22. So the uptrend may continue in Bank Nifty in the short term.
23. So in my opinion, it is buy on dips market rather than sell on rise market.
24. This whole week, local cues will play more role than global cues.
25. China closed for the week is a good news for bulls.
26. Govt. increased minimum import price for steel is positive for this sector.
27. But we should avoid Tata Steel due to its very bad results.
28. There was a good amount of Call buying by FIIs on Friday.
29. So today we have to see whether gap down will be bought or not.
30. There will be huge resistance at 7600 this week and if that is taken out then Nifty will move towards 7800.