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

May 18, 2016
Time: 8.45 am

Pre Market Report:

1. One of the worst volatile months for stock markets.
2. Dow is moving about 200 points everyday for the last 10 days.
3. Last Thursday it was down by 200 points, then Friday down by 200 points, then on Monday it was up by 200 points again on Tuesday down by 200 points.
4. In India also Nifty has been making more than 100 points swing almost everyday.
5. Yesterday around 3 pm Nifty future was at 7960, today morning at 6.30 am it was at 7836 in Singapore, a swing of 130 points.
6. Nifty future has been swinging violently between 7700 and 8000.
7. Traders are losing money whether they go long or short.
8. This high volatility may be a base building for next big trend.
9. The trend may be upside or downside.
10. If Nifty future 7700 is broken on the downside, the trend will be down and if Nifty future breaks 8000, then the trend will be up. 
11. Punjab National Bank and JSW Steel will be in focus ahead of their results.
12. Maruti will be in focus as Japanese markets are doing well despite global weakness.
13. HDFC will be in focus as it is raising 1500 crores by issuing bonds.
14. Motherson Sumi and Voltas came out with good results.
15. So midcaps are likely to out perform.
16. Markets may trade with a range.
17. Only tomorrow when assembly results are clear, markets may make a big move.
18. Today Nifty future should take support at 8840.
19. Resistance will be at yesterday's high of 7960.