Pre Market Report, March 11, 2016 | Stocks and Commodities

March 11, 2016
Time: 8.45 am

Pre Market Report:

1. Yesterday evening, ECB announced stimulus package and markets in Europe shot up.
2. SGX Nifty was up by more than 70 points.
3. Then selling came in Europe as further rate cut was ruled out by ECB.
4. Then SGX Nifty fell more than 100 points intraday.
5. US markets fell significantly intraday but recovered to close flat at the end.
6. So Asian markets are marginally higher due to US recovery in the late session.
7. SGX Nifty is also slightly positive.
8. But a trend I have been noticing in the last few days is that Nifty falls immediately after the opening irrespective of global cues.
9. O top of this worry, huge selling by DIIs is another worry.
10. So we have to see how our markets move in the first half an hour.
11. I expect some sharp move towards the end of the day.
12. But on which side, we do not know.
13. Yesterday all index heavyweights came down.
14. One possible reason is that people who show interest in buying Infosys would have more index heavy weight stocks in their folio, so those people would have off loaded some shares of Reliance, ITC in order to buy Infosys.
15. But not everything bad yesterday, HDFC came to focus after a long time, Maruti was in a dull market, usually Maruti falls when markets are down.
16. Banking stocks did well, particularly Private Sector Banks.
17. Many private sector banks like Yes Bank, Kotak Bank hit fresh 2016 high.
18. Also buyng came at lower levels and Nifty did not close at the lowest point of the day was something good for bulls.
19. We have to see how how Europe opens and trades in the afternoon after knee jerk reaction yesterday.
20. This huge volatility may continue for few more days. 
21. Nifty should not break 7400 and that is very important.
22. On the higher side, if Nifty crosses 7550, the momentum on the higher side will pick up.
23. So Nifty may trade in the range 7400-7550 for next few days.