Pre Market Report, March 3, 2016 | Stocks and Commodities

March 3, 2016
Time: 8.35 am

Pre Market Report:

1. US markets closed higher after a volatile session.
2. Asian markets are mostly higher.
3. SGX Nifty is trading around 7400 after hitting a high of 7429.50.
4. The bull run in the last few days looks similar to 2011 March rally.
5. In 2011, FIIs have sold heavily in January and February, then just after budget Nifty shot up and recovered about 80% of the losses made in January and February and then corrected only in May.
6. So if the history repeats, Nifty is likely to move to 7700 to 7800 level over a period of next 6 to 8 weeks.
7. Then correction may set in May 2016.
8. Since markets have made double bottom below 6800, Nifty 6800 will be the strong support for medium term.
9. Since 7250 was the huge resistance few days before, now it is taken out, Nifty 7250 will be the strong resistance in the short term.
10. Nifty 7000 Put has an open interest of 66 lakhs which shows that Nifty 7000 is a very very strong support for this series.
11. People choose Nifty 7000 instead of Nifty 7200 as the premiums are really very high even at Nifty 7000.
12. Since the premiums are high, one can make good money even with lower risk.
13. One can consider selling Nifty 7000 Put and Nifty 7800 Call which will give more than 10% return and Nifty is expected to trade between 7000 and 7800 until the end of this month.
14. The next leg of the rally may be by other than banking stocks as banking stocks have run up already.
15. Auto stocks will be in focus as there is a news report that 15% discount may be given to scrap the old cars.
16. IT, Pharma, Auto and Energy stocks will have to move for markets to go higher.
17. Today for the first time in the last few days, markets are not likely to make big moves.
18. India VIX is likely to go down.
19. Nifty should find some resistance around 7440.
20. Support for today will be around 7360.