Pre Market Report, May 19, 2016 | Stocks and Commodities

May 19, 2016
Time: 8.45 am

Pre Market Report:

1. US markets closed mixed after Fed minutes that said there will be interest hike in June meeting if Economic data is good.
2. Just after this news, Dow fell 150 points within few seconds.
3. SGX Nifty was above 7900 yesterday night, but today morning it opened below 7850 after this news.
4. US rate hike, FII selling in Cash market, Election results uncertainty all contributing to the downfall in SGX Nifty.
5. Markets may recover only after election results.
6. As usual, markets are highly volatile between 7700 and 8000.
7. Maruti will be in focus as it has cheated on mileage..
8. Yesterday Auto stocks dragged the market.
9. Tata Motors will be in focus as LIC has increased stake in it.
10. Sun TV will crash if DMK fails in Tamil Nadu and if DMK wins it may go up by 4 to 5%.
11. Bank of India, IOB and Uco Bank will be in focus as they may be merged with bigger banks.
12. Monsoon is a big positive and US rate hike is a big negative for India.
13. So we have to see whether Nifty breaks down 7700 or breakout 8000 in the next few days.
14. Yesterday FIIs have sold for Rs 251 crores and DIIs have bought for Rs 240 crores.
15. Despite huge volatility, Nifty 7800 Put has the highest open interest.
16. Nifty 8000 Call continue to have highest open interest among Calls.
17. Election trend will be clear by 10 am, so markets may make big moves after that.
18. Nifty future should take support at yesterday's low.
19. Resistance will be 7920, if the election results are too good and if there any short covering, then Nifty future may extend to 7960.