Pre Market Report, April 18, 2016 | Stocks and Commodities

April 18, 2016
Time: 8 am

Pre Market Report:

1. Due to three holidays between last Wednesday and this Wednesday, I have decided to take a break from hot summer in Chennai. I am in Kodaikanal and forgot about the markets for the last few days.
2. But many things have happened in the last few days.
3. US markets were lower marginally on Friday.
4. But very good results from Infosys supported SGX Nifty at higher levels and SGX Nifty hit a high of 7958 on Friday.
5. Infosys shot up by 8.4% in US though US markets fell on Friday.
6. But TCS paying Rs 6000 crore penalty for copying a software in US will make sure Infosys positive effect is nullified.
7. Infosys is likely to trade about 5 to 6% higher and TCS is likely to fall 8 to 10% and hence there will be no positive effect by IT in Nifty.
8. RBI asking banks to treat loans of Punjab as NPA will increase the overall provisioning by 4000 crore.
9. This is negative for Banking stocks.
10. Petrol and Diesel prices cut is positive for Auto sector.
11. On Wednesday both FIIs and DIIS were net buyers in Cash market.
12. That will suport our markets at the lower levels.
13. China GDP data came as expected, so there is no nasty surprises from China markets.
14. Crude oil prices fell about 5% as there was no agreement by oil producing nations about production cut.
15. SGX Nifty is trading around 7900.
16. Tomorrow is a holiday and hence traders may not create huge positions.
17. India VIX is likely to fall as markets will be range bound.
18. Nifty future is likely to trade between 7860 and 7950.