Pre Market Report, March 16, 2016 | Stocks and Commodities

March 16, 2016
Time: 8.40 am

Pre Market Report:

1. US markets opened gap down but recovered to close at day's high.
2. Asian markets are marginally higher.
3. Nobody will be willing to create huge positions ahead of Fed meet.
4. SGX Nifty is trading around 7500.
5. Yesterday Nifty fell but Bank Nifty rose.
6. People are suggesting to go short in Nifty and long on Bank Nifty as pair trade.
7. Some people suggest to go short in Nifty and long on S&P 500 or Dow.
8. If Bank Nifty did not support, yesterday Nifty would have fallen more than 150 points.
9. It was the out performance of Bank Nifty that saved the markets.
10. Yesterday both FIIs and DIIs have sold and that is a bad news for bulls.
11. But ahead of Fed meeting and due to good global cues, short sellers may square up the trades before the end of the day today.
12. So signals are confusing, Nifty is still in the region 7400-7600.
13. Markets will fall only if breaks 7400 on the downside and 7600 on the upside.
14. Markets may be choppy in this range.
15. Similarly Bank Nifty is trading in the range 15000 and 15500 for the last 6 trading sessions.
16. Due to the huge run up during the budget week, markets are consolidating and for break out or break down, some trigger is required.
17. That trigger may be the Fed meeting out come.
18. If that becomes a non event, then RBI policy on April 5, will the trigger, but that is a long way to go.
19. Pharma sector did badly yesterday.
20. Rate sensitives are likely to do well today also.
21. Real estate stocks will be in focus and FPIs are allowed to invest in REITS.
22. Nifty future is likely to trade between 7450 and 7550 today.