Pre Market Report, March 21, 2016 | Stocks and Commodities

March 21, 2016
Time: 8.15 am

Pre Market Report:

1. Asian markets are mostly positive.
2. Japan market is closed.
3. SGX Nifty is trading around 7630.
4. Particularly, China is showing stability.
5. I am getting different views from some technical people.
6. Somebody says on weekly chart 'Hanging Man' pattern has come and that means we are somewhere near peak and markets are likely to fall from here.
7. On the other hand, on daily chart Nifty broke the resistance of 7600 with huge volume and hence the trend is likely to continue.
8. I feel that markets are likely to consolidate with positive bias this week and any significant move of more than 100 points in Nifty will happen only next week.
9. As I said yesterday, huge open interest is seen at 7400 Put and 7700 Call and hence Nifty 7400 will be a very good support and Nifty 7700 will be a good resistance.
10. The real action will be in banking stocks.
11. Pharma sector is under pressure due to Lupin.
12. Energy sector may be under pressure as oil is falling again.
13. IT sector will not be good as Rupee is appreciating.
14. So the leadership has to come from Banks.
15. I will not be surprised if Bank Nifty touches 16000 by this week.
16. And that will keep Nifty in positive territory.
17. Many Banking stocks are up by more than 15% this month and further short covering rally is not ruled out.
18. Nifty future is likely to trade between 7580 and 7680.