Pre Market Report, April 7, 2016 | Stocks and Commodities

April 7, 2016
Time: 7.45 am

Pre Market Report:

1. US markets closed positive.
2. Asian markets are trading mostly positive.
3. SGX Nifty is trading around 7750.
4. Yesterday again FIIs have sold in Cash markets.
5. This second day of selling is a worrying factor.
6. If global cues change to positive, then our markets will consolidate and then results season will decide the direction of the market.
7. BHEL will be the first one to declare provisional results today. So watch this stock.
8. Otherwise, if FIIs keep selling, then markets may move lower.
9. As long as Nifty future holds 7580, then there is nothing to worry.
10. Yesterday I expected at least 50 points recovery in Nifty but that has not happened.
11.  So markets may not move significantly this week.
12. Next week there will be only three trading sessions.
13. So markets may move significantly only in the third week when results start coming in.
14. Until then markets may be volatile within a small range.
15. Yesterday one good thing happened was fall in India VIX.
16. Nifty was up just by 11 points, yet Nifty 7200 Put was down by Rs 5 and Nifty 7600 Put was down by Rs 17. This is the magic of VIX.
17. Both Put and Call options fell.
18. In the last many days markets were weak in the first half and strong in the second half which may change now.
19. Now we may see strong markets in the first half and weak markets in the second half.
20. Surprisingly Metal index is doing very well. JSW Steel keep making fresh 52 week high almost everyday.
21. Banking stocks look very weak, particularly ICICI Bank, Axis Bank and PSU Banks.
22. IndusInd Bank, Kotak Bank and Yes Bank trading with positive bias.
23. Yesterday night, after US crude inventory report, Crude prices surged and that supported US markets.
24. So energy sector may be in focus today. Reliance is also doing very well on the back of Reliance Jio news.
25. Nifty future should take support at 7580.
26. Resistance will be at 7680.