Pre Market Report, April 26, 2016 | Stocks and Commodities

April 26, 2016
Time: 8.15 am

Pre Market Report:

1. US markets closed marginally lower, but Dow recovered more than 100 points from intraday low.
2. Asian markets are mostly lower.
3. SGX Nifty is trading around 7850, about 25 points lower than yesterday's actual closing.
4. Yesterday DIIs have sold for Rs 748 crores and that is a very bad news.
5. Reliance fell more than 2% despite declaring better than expected results.
6. Despite the bullishness in the markets, HDFC has been under pressure for a long time.
7. Reliance, HDFC and ITC alone was responsible for about 30 points fall in Nifty yesterday.
8. Markets are likely to be under pressure today and tomorrow.
9. On Thursday, once the central banks outcome is clear (Japan and US), markets will move according to the outcome.
10. Today Axis Bank and Maruti will declare results.
11. In the past whenever markets were good in the first three weeks, Nifty has fallen more than 200 points in the last week of the expiry.
12. In fact this time, SGX Nifty high was 8016 and we have already fallen about 200 points from the peak.
13. We have to see how much further Nifty can go.
14. Nifty 7800 Put has the highest open interest followed by Nifty 7700.
15. So if Nifty breaks 7800, then we can expect expiry below 7700.
16. On the other hand, Nifty will face stiff resistance at 7900.
17. If 7900 is crossed, Nifty may expire above 8000.
18. So it is a very uncertain market for the next three days.
19. We also have to see how corporate results come out.
20. It is the Bank Nifty that is holding the market.
21. Between last Monday and this Monday, Nifty has lost about 60 points but Bank Nifty has gained about 400 points.
22. If Bank Nifty had not shot up then by this time, Nifty would have been trading below 7700.  
23. In this context, Axis Bank result is very important.
24. Yesterday most PSU Banks fell, it was the private sector banks that held the Bank Nifty.
25. So any bad news from private sector banks, today Axis Bank results, tomorrow Yes Bank results are due, Nifty will fall drastically.
26. So bears are ready to hammer the markets down closer to the expiry.
27. Nifty future should find support at 7820, resistance will be at 7900.