Pre Market Report, March 9, 2016 | Stocks and Commodities

March 9, 2016
Time: 8.45 am

Pre Market Report:

1. US markets closed negative after 5 sessions of uptrend.
2. Asian markets are mostly down.
3. People are booking profits after huge run up in the last one week.
4. SGX Nifty is trading about 20 points lower.
5. Our markets may consolidate between 7380 and 7520 for few days.
6. FIIs are building huge long positions in derivative markets.
7. In fact, FII Call buying is at the highest level in the last 5 years.
8. What a change, just one week before, their Put buying was at the highest level in the last 5 years.
9. Since there are no major triggers, markets may consolidate with negative bias.
10. DII selling of over Rs 1000 crores in a surprise.
11. There are lot of stocks that are trading at a deep discount in futures market.
12. For example, Reliance Infra futures are trading at Rs 15 discount which is more than 3%.
13. This is one of the reasons people are afraid of going long in futures and hence market momentum is waning.
14. Things will be clear within a week, as companies that intend to declare dividend will have to inform the Exchange 15 days in advance.
15. So everyone assume that these companies will declare hefty dividends and that is why futures are trading at such a huge discount.
16. All these discounts will disappear by next week if they do not inform the exchange about dividend.
17. If they inform the exchange, then the suspense will continue until the end of this month about the quantum of dividend and the the discount may continue.
18. Crude oil has fallen by about 3%.
19. Nifty future should take support at 7380.
20. Resistance will be at yesterday's high of around 7500.
21. Markets may trade with negative bias in the morning and there may be some sharp upmove towards the end of the day.