Pre Market Report, May 24, 2016 | Stocks and Commodities

May 24, 2016
Time: 8.50 am

Pre Market Report:

1. US markets closed lower after trading marginally higher for most part of the day.
2. Asian markets are all down but marginally.
3. SGX Nifty is down by about 10 points.
4. Last Thursday and Friday there was heavy selling by FIIs in Cash market.
5. But there was no severe selling in F&O by FIIs.
6. But yesterday FII selling was only Rs 65 crores in Cash market.
7. But there was huge FII selling in F&O.
8. Though markets are down in Asia, they are down marginally as most of the selling has already happened in the last one month.
9. Here, Nifty future should take support at 7700.
10. That is a very important support level.
11. If that level is broken, then expiry will be around 7620.
12. Nifty fell despite 5% rise in index heavy weight ITC.
13. That shows the weakness of the broader market.
14. Reliance keep falling without any reason, it has already fallen by more than 10%.
15. Cipla and Tech Mahindra will declare results today.
16. It is difficult to predict intraday levels during high volatile time like this.
17. Through out May, our markets have been highly volatile.
18. Nifty had been moving more than 100 points almost every day that too on both sides.
19. Since our markets have fallen for four days in a row and opening lower today also, there may be some short covering either today or during the next two days.
20. We should be happy if Nifty expires above 7800.
21. Much awaited good news from monsoon has not materialised.
22. So next trigger will be only in the first week of June when monsoon reaches Kerala.
23. So there will be roller coaster ride until then.
24. ICICI Bank is threatening to break monthly low and that is not good for Bank Nifty.
25. Already PSU Banks are under performing, now pressure is coming from ICICI Bank and Axis Bank.
26. Yes Bank is the only bank that is out performing due to its inclusion in MSCI index.
27. Auro Pharma, L&T, Tata Steel all falling ahead of their results.
28. Nifty future is expected to trade between 7700 and 7780.