Pre Market Report, May 30, 2016 | Stocks and Commodities

May 30, 2016
Time: 8.30 am

Pre Market Report:

1. Asian markets are trading flat with negative bias.
2. Japan is trading positive.
3. But SGX Nifty is trading around 8215, about 45 points higher.
4. This is mainly due to good corporate results and good chances of monsoon onset earlier than expected.
5. There has been very good rainfall in Kerala meeting the first condition of onset of monsoon.
6. The other conditions like cloud formation and wind direction is too technical for us to understand.
7. Any time IMD will announce the onset of monsoon, may be tomorrow or day after tomorrow.
8. That will give another leg of up move to Nifty.
9. Corporate results from Coal India, Hindalco, Reliance Infra all were good over the week end.
10. Today Sun Pharma, Auro Pharma, Tata Motors and M&M are the key companies to declare results.
11. Auro Pharma will declare results after the markets close, Tata Motors towards the end of the trading session.
12. Though markets are likely to be very good in the months to come, in short term, it is time to be cautious.
13. In just 5 trading sessions, Nifty is up by more than 500 points.
14. This is a huge rally, so profit booking may set in at any time.
15. I expect some profit booking towards the end of this week.
16. Today being the last day to declare corporate results, hundreds of companies will declare results today.
17. So stock specific action will continue.
18. Fiscal Deficit data, GDP data, Monthly auto sales data all will keep the markets alive for next two trading sessions.
19. Before the correction, I also expect Nifty future to touch 8280.
20. Reliance Infra will be in focus after very good results.
21. I sold 3 lots of 480 Put and 1 lot of 640 Call, collected a premium of more than Rs 5 per share in all the contracts.
22. I hope to make some money today in that trade.
23. Nifty future will face resistance around 8240.
24. If Nifty future trades firmly above 8220, then next target will be 8280, but that may not happen today as global cues are not very positive.
25. On the downside, support will be at 8170.
26. There will be very strong support at 8000 for the entire series.