Pre Market Report, May 16, 2016 | Stocks and Commodities

May 16, 2016
Time: 8.25 am

Pre Market Report:

1. Though US markets were down on Friday, Asian markets are up.
2. Only China is slightly down due to bad manufacturing data.
3. SGX Nifty trading at 7820 after hitting a low of 7775.
4. This is a recovery of about 45 points which is very good.
5. Everyone is confused why our markets fell more than 100 points intraday on Friday as there was no selling by FIIs or DIIs in Cash market.
6. Today we have many good news and many bad news.
7. Good news first, there was no selling by FIIs or DIIs in Cash market on Friday, firm Asian cues, CLSA upgraded Bank of Baroda despite very poor results, etc.
8. Bad news, US markets fell, monsoon delay, bad results from PSU Banks, P Note scare, etc.
9. There are uncertain events also like, WPI Inflation data today afternoon, exit poll results today evening, etc.
10. So it will be interesting trading session, who is going to blink first, short sellers or long holders?
11. That will determine the market direction.
12. If Nifty manages to close positive, then there is every possibility, Nifty will expire closer to 8000, if not above 8000.
13. I am bringing down my expectation slightly due to delay in monsoon by one week.
14. June expiry is likely to be very good, Nifty may test 8300 in June series.
15. Global cues and WPI inflation will dominate the markets as there are no key corporate results today.
16. Nifty should take support at 7780, failing which it will head towards 7720 and then 7700.
17. Resistance will be at 7880 and then 7920.