Pre Market Report, February 9, 2016 | Stocks and Commodities

February 9, 2016
Time: 8.45 am

Pre Market Report:

1. Markets all over the world have turned ultra bearish within few hours starting yesterday afternoon.
2. Until yesterday afternoon, Dow futures was up by about 100 points but fell more than 400 points when US markets opened yesterday night.
3. Today morning, Japan's Nikkei index is down by about 5%.
4. Yesterday around 2 pm, Nifty future was at 7535 and just one and half hour trade, it closed at 7380.
5. Today morning it is likely to open below 7320, a fall of more than 200 points in a matter of 2 hours of trading.
6. Yesterday only I mentioned that as China markets are closed, markets will move due to local cues than global cues.
7. That did not hold even for one day, global cues are dominating the markets.
8. Many PSU Banks will declare results starting with Punjab National Bank today.
9. That may add volatility to Bank Nifty.
10. SGX Nifty is trading around 7320 which is just 1% above 52 week low for Nifty.
11. We have to see how oil prices move from here on, how rupee holds, how European markets react today afternoon, etc.
12. It is time to cut long positions and trade with strict stop losses.
13. The fear index, India VIX is likely to shoot up and hence the option premium.
14. There will be panic in the markets due to gap down as Nifty 7400 Put has the highest open interest among Puts.
15. We have to see how markets trade after the initial panic.