Pre Market Report, April 12, 2016 | Stocks and Commodities

April 12, 2016
Time: 8.55 am

Pre Market Report:

1. US markets closed lower after trading higher for most part of the day.
2. Asian markets are mixed.
3. SGX Nifty is trading around 7685, lower by 10 points.
4. Yesterday it was a short covering rally that took Nifty about 180 points higher from intraday low.
5. Bank Nifty shot up by more than 400 points from intraday low.
6. I expected that short covering rally today as markets may open gap up or down tomorrow due to IIP and CPI inflation data today evening.
7. But the short covering rally has come one day ahead.
8. Marker are likely to consolidate today.
9. Yesterday there was not much buying by FIIs or DIIs.
10. FIIs have bought for about 100 crores and DIIs have bought for about 300 crores in Cash market.
11. In F&O also there was no significant buying by FIIs.
12. Still markets shot up like this just by short covering of retail people.
13. So markets may consolidate here and after IIP and CPI inflation data, markets may resume the uptrend.
14. Skymet, a private agency has said that the monsoon this year is going to be very good.
15. As I said earlier, if monsoon forecast is good and if initial set of corporate results (from Infosys, TCS, Wipro, Axis BAnk, Indus Ind Bank, HDFC Bank) are good, then Nifty may head towards 8000 by the end of this expiry.
16. Now the monsoon forecast has come in a very positive way.
17. So we need to wait for corporate results by the end of this week and next week.
18. If Nifty future crosses 7720, then it will head towards 7780.
19. Whether that will happen today or tomorrow, I am not sure.
20. Nifty future is likely to take support at 7660.