Pre Market Report, May 2, 2016 | Stocks and Commodities

May 2, 2016
Time: 8.10 am

Pre Market Report:

1. US markets closed lower on Friday but recovered more than half of the intraday losses.
2. Asian markets are all down today.
3. China and Hong Kong are closed for trading today.
4. China Manufacturing PMI came at 50.1 yesterday against the expected figure of 50.4.
5. Though it is lower than expected, still it shows that economy is expanding.
6. A reading above 50 means economy is expanding and a reading below 50 means economy is contracting.
7. So far Bank Nifty was supporting our markets but now all private sector bank results are out. There will be no more trigger for Bank Nifty in the short term.
8. So markets may move according to the global cues.
9. Global cues are any way will be negative in May.
10. US markets are trading closer to all time high and corporate results there are not good, so markets in US may correct further.
11. SGX Nifty is trading around 7840 which is a 60 point gap down for our markets.
12. On Friday FIIs were net sellers in Cash market for about Rs 205 crores.
13. So that will be a big negative for our markets.
14. ICICI Bank results were not good.
15. Last time NPA shock came from PSU Banks and this time it came from Private Sector Banks.
16. But Kotak BAnk, Yes Bank, IndusInd BAnk and HDFC Bank are trading closer to 52 week highs.
17. Auto stocks will be in focus as monthly sales data will be released today.
18. Cements stocks will also be in focus for the same reason.
19. Manufacturing PMI data will be out at around 10.30 am.
20. HDFC will be in focus as it declares results today. The stock will move higher due to short covering if results are good.
21. There is huge short left in that counter.
22. No big results this week, no local triggers, FIIs have become cautious all pointing to subdued markets for the next few days.
23. Friday's low for Nifty future was 7831, it looks like that will be breached today.
24. The next support will be at 7820 followed by 7780.
25. There will be some panic selling if Nifty future falls below 7780 which may not happen today.
26. Europe is likely to open positive in the afternoon and that may support our markets.
27. Since the Japan news has been factored in, markets may consolidate around this level or may recover from here.
28. Even on Friday our markets were very volatile and that may continue.
29. Resistance will be at 7880.