March 10, 2016
Time: 8.15 am
Pre Market Report:
Time: 8.15 am
Pre Market Report:
- US markets closed higher after a volatile session.
- Asian markets are mostly higher.
- SGX Nifty is trading around 7560.
- RBI lifted restrictions on FIIs to buy Kotak Bank, so Kotak Bank will be in focus.
- Foreign brokerages upgraded ICICI Bank and that will also be in focus.
- There is a good amount of delivery based buying in Yes Bank and IndusInd Bank.
- So all private sector banks are likely to do well and hence the Bank Nifty.
- Rise in Bank Nifty will also support Nifty.
- Iron ore prices are firming, Crude prices are up despite higher stock inventory in US yesterday night.
- Next few days are very important for markets: Today NZ cut rates by 25 basis points, today evening ECB meeting, next week Fed meeting, BOJ meeting, tomorrow evening IIP data, on Monday during market hours WPI Inflation data and after market hours CPI inflation data all will decide the direction of the market.
- If all above factors turn favouable, I will not be surprised if Nifty reaches 7800 which is my target for Nifty.
- Yesterday was the first day bulls became confident and discounts in Nifty and Bank Nifty were wiped out.
- All those who sold Nifty 7500 Call options, which had the highest open interest among Calls, had to hedge the positions either by going long in Nifty or by selling 7500 Put.
- That is why Nifty 7500 Put added more than 9 lakh shares in open interest.
- These will get get scared only when Nifty crosses 7700, until then they will be hoping for consolidation to make money in the short straddle at 7500.
- So if Nifty moves another 100 point then it will move by one more 100 points easily which will take the Nifty to the target area of 7800.
- So be ready for action packed markets for the next few days.
- Today more than Nifty, stock specific action will continue.
- Infosys may drag the markets today due to promoters selling the shares.
- Nifty future is likely to trade between 7480 and 7600.
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