Pre Market Report, June 15, 2016 | Stocks and Commodities

June 15, 2016
Time: 8.50 am

Pre Market Report:

1. US markets and European markets are closed down once again.
2. But many Asian markets are up.
3. This may be due to value buying at lower levels.
4. The actual problem is in Europe and Asian markets are falling as collateral damage.
5. So there will be some value buying at lower levels.
6. But the clarity will emerge only after June 23, when Brexit issue will be clear.
7. Nifty closed at 8070 on the expiry day on May 26, 2016.
8. It is somewhere there after 13 trading sessions.
9. But we are far better compared to other markets.
10. Many markets have fallen by 10% during this time.
11. Even yesterday Nifty closed almost flat despite huge selling by FIIs in F&O, they have sold nearly 1900 crores in Index Futures and 175 crores in Stock futures.
12. Yesterday for the first time in the last few weeks, both FIIs and DIIs were net sellers in Cash market, though not in big quantities.
13. RBI relaxed the rules regarding bad loans and that helped PSU Banks and high debt companies yesterday.
14. JP Associates up by 15% and PNB was up buy 8%.
15. GST related stocks all fell due to profit booking.
16. Bank Nifty out performed Nifty yesterday and that is likely to continue today.
17. Auro Pharma will be in focus due to FDI approval.
18. Due to positive Asian cues, Nifty may open higher.
19. But heavy selling by FIIs in F&O may limit upside.
20. It is interesting to note that FIIs have sold heavily in index futures but have bought Call options.
21. SGX Nifty is trading around 8145 about 25 points higher than yesterday's close here.
22. Even US markets may turn around tonight after Fed policy announcement.
23. But any significant rise will be used to short the market until Brexit issue is over.
24. Generally markets will be volatile for next few days.
25. Nifty future is likely to take support at 8080.
26. Resistance will be around 8180.
27. Last expiry Nifty was trading between 7700 and 8000, only on the day of expiry, Nifty broke out and closed at 8070.
28. The same way, this expiry may trade between 8000 and 8300 and any break out or break down will happen only after Brexit issue is clear.
29. But markets may be highly volatile within this range.
30. Also it is important to see where markets close just before Brexit, whether it is closer to 8000 or closer to 8300.