Pre Market Report, March 8, 2016 | Stocks and Commodities

March 8, 2016
Time: 8.15 am

Pre Market Report:

1. US markets closed mixed after 4 days of uptrend.
2. Asian markets are also trading marginally lower after three to four days of rally.
3. Due to the weakness in Asia, US future are also lower.
4. SGX Nifty closed at 7560 yesterday night but now trading around 7490, huge difference of 70 points.
5. Iron ore prices shot up by 19% yesterday, a record rise in one day.
6. Brent crude surpassed US$40.
7. China markets are down by about 3%.
8. China will be releasing trade data at 8.30 am (Indian Time) and that is why that market is nervous.
9. Things may change after 8.30 am.
10. Since the highest open interest among Calls is at 7500, that will not be broken (in futures) without a tough fight.
11. While writing this report, China has released its trade data 20 minutes ahead of the scheduled time.
12. China's export fell by 25% and trade balance was 3.6 billion US$ against the expected figure of 50 billion US$.
13. This is a bad figure but China markets seems to have factored in this negative news and not falling further.
14. Govt. plan to consolidate PSU Banks may be a positive for PSU Banks.
15. Increase in commodity prices will also help banks to recover their dues and that is generally positive for both PSU and Private sector banks.
16. Coal India declared a dividend of Rs 27.4 per share. About Rs 25 dividend has already been discounted by the markets.
17. Generally huge dividend payout is expected and that is why Nifty future trades at a discount of 25 points to spot Nifty compared to 25 to 30 points premium before the budget.
18. Nifty future is likely to take support at 7420.
19. Resistance will be at 7560.
20. Markets may consolidate for one or two more days before moving higher.
21. I expect this series to expire around 7800.
22. We have a long way to go, let us see what happens.