Pre Market Report, May 25, 2016 | Stocks and Commodities

May 25, 2016
Time: 8.20 am

Pre Market Report:

1. US markets closed significantly higher.
2. Asian markets are all trading significantly higher.
3. SGX Nifty is trading more than 1% higher.
4. This is a huge gap up considering that we are very close to expiry.
5. Yesterday Nifty 7800 Call was trading around Rs 20 and if Nifty trades above 7820 for 30 to 45 minutes, then short covering will set in by these 7800 Call sellers and Nifty future may even go to 7880 today.
6. But that may not come so easily, there will be selling and volatility will be there.
7. Yesterday markets turned around when there was a news from Skymet that this year monsoon will be 10% more than the long time average rain fall.
8. This is a very good news.
9. Yet FIIs have sold for more than 800 crores in Cash market and that is very bad.
10. So still P Note related selling is not over.
11. But when the sentiment is good, this selling will be absorbed easily.
12. Corporate results have been good except PSU Banks and Pharma companies.
13. Yesterday Cipla came out with bad set of numbers, this stock may be out of Nifty in the future.
14. Bank of India another small PSU Bank to declare more than 3000 crore loss. Bank of Baroda and PNB are the other two PSU Banks to declare more than 3000 crore loss.
15. We need to watch NPA from SBI on Friday.
16. Tech Mahindra came out with very good results.
17. Today Tata Steel, L&T, Bajaj Auto are some of the big companies to declare results today.
18. Nifty is likely to expire between 7880 and 7920 if there is any short covering.
19. Monsoon news has changed the bearish view in one day, also global cues are supporting.
20. Asian markets have been falling for the last one month and most Asian markets hit 3 months low yesterday and hence if they turn around, markets may continue to move higher for few more days.
21. Nifty future did not break 7700 and that is a good news.
22. Now Nifty 7700 has become double bottom and technically markets have bottomed out at 7700.
23. So we can expect the uptrend to continue and 8000 may be tested by the first week of June.