Pre Market Report, May 27, 2016 | Stocks and Commodities

May 27, 2016
Time: 8.45 am

Pre Market Report:

1. US markets ended mixed after a range bound trading.
2. Most Asian markets are up but marginally.
3. Hong Kong and China are down.
4. SGX Nifty is trading around 8100 about 20 points higher than yesterday's close.
5. In Cash market, both FIIs and DIIs were on the net buy side.
6. This is very positive as usually FIIs will be on the sell side due to arbitrage fund selling.
7. The actual delivery buy will be more than what the data shows.
8. We are almost at the end of the results season.
9. Except PSU Banks, Pharma and ICICI Bank-Axis Bank duo, all other companies have declared very good results.
10. So the earnings recovery is clearly visible.
11. Look at the "Dalal Street Week Ahead" three weeks before, I mentioned that Nifty is expected to expire above 8000 in May and will not not be surprised if Nifty expires around 8300 in June series.
12. This earnings recovery along with good monsoon will propel the Nifty to all time high in the next 6 to 7 months.
13. Today SBI and BHEL will come out with results.
14. Since the Bank Nifty has shot up almost 1000 points in the last three trading sessions, SBI results will be watched keenly.
15. Since the run up was huge, markets may consolidate for a day or two.
16. Then economic data like monthly auto sales, PMI data, US jobs data, etc will guide the markets.
17. Speculation will start building next week ahead of RBI policy meet the following week.
18. Nifty is likely to face resistance at 8120, if that is crossed then next target will be 8180.
19. Now it is a buy on dips market, any fall of 30 to 50 points in Nifty will get arrested by fresh buying.
20. Now Nifty 8000 will act as a strong support.