Pre Market Report, May 5, 2016 | Stocks and Commodities

May 5, 2016
Time: 8.15 am

Pre Market Report:

1. US markets closed lower once again.
2. ADP Non Farm payroll data came at 1,46,000 against an expected figure of 1,96,000.
3. That was the reason why US markets fell once again.
4. Asian markets are down but marginally.
5. SGX Nifty hot a low of 7700 and now trading around 7730.
6. Markets are likely to stabilise around this level, if there are no more bad news.
7. First the bad news came from Japan, then from Australia, then from China and now from US.
8. Despite market weakness, there is an attempt to move higher everyday.
9. Yesterday FII selling was only 66 crores in Cash market and that is a positive news.
10. That is one of the main reasons why SGX Nifty is trading flat.
11. Hero Moto will declare results today.
12. Markets are rewarding companies with good results like IndusInd Bank, Yes Bank, Kotak Bank.
13. AT the same time punishing companies with bad set of numbers like ICICI Bank and Axis Bank.
14. Market cap of Kotak Bank now is more than the market cap of ICICI Bank.
15. Now Nifty has fallen about 300 points in the last few days, markets should stabilise and the bottom is some where near.
16. Any significant up move may come only next week.
17. SInce ADP Non Farm payroll data was bad, the expectation will be very low for Friday's jobs data from US.
18. Next week, IIP data and Inflation data may change the direction for markets.
19. Now with most blue chip companies results are out, there are no triggers for markets to move higher.
20. Action will begin only in the third week of May when monsoon expectation start factoring in the markets.
21. Nifty future is likely to take support at 7680.
22. Resistance will be at yesterday's high of 7790.