Pre Market Report, May 23, 2016 | Stocks and Commodities

May 23, 2016
Time: 8.15 am

Pre Market Report:

1. Asian markets are mostly positive after trading lower in the morning.
2. China markets opened higher and that changed the sentiment.
3. SGX Nifty tested a low of 7738 but now trading above 7780 which is a positive sign.
4. ITC is likely to trade higher after good results.
5. Most brokerages have upgraded the stock.
6. But any rise in ITC will be compensated by severe selling in Reliance.
7. Reliance has fallen more than 10% in the last one month, this is surprising when oil prices are going up and ONGC going up.
8. PSU Banks are under performing.
9. EVen smaller banks like Syndicate bank coming out with thousands of crores in NPA. Latest one is IDBI Bank.
10. Private sector banks showing divergent trend, Yes Bank is up and ICICI Bank is down.
11. We need to watch the Rupee movement against dollar to see if there is any further pressure from FIIs.
12. If there is no further selling by FIIs in Cash market, Nifty is likely to recover from Friday's low.
13. Nifty future is likely to trade between 7780 and 7820.
14. Sharp move is expected only when this range is breached.
15. On break down Nifty future is likely to test 7720.
16. On break out Nifty future is likely to test 7880.
17. Nifty future is expected to trade between 7700 and 7900 until expiry.