Pre Market Report, June 16, 2016 | Stocks and Commodities

June 16, 2016
Time: 8.30 am

Pre Market Report:

1. Fed did not go for rate hike which is in line with market expectation.
2. Fed Chairman said there will be fewer rate hikes in future due to global turmoil.
3. But US markets fell in the last half an hour as Brexit fear will take over.
4. Most Asian markets are down.
5. SGX Nifty is trading around 8180.
6. Yesterday DIIs have turned net buyers in Cash market and FIIs have turned net sellers.
7. There was no significant action in F&O.
8. Markets in Asia are keenly waiting for Bank of Japan decision at 8.30 am.
9. Last BoJ meeting on April 28, 2016, BoJ disappointed the markets and Nifty fell 150 points intraday, since that happened to be the expiry day, the loss was very high for traders.
10. Infosys will be in focus. This stock has nearly 1% weightage in MSCI emerging index. Since China shares were not included, there will be no selling by index funds.
11. Infosys saw 90% delivery volume in yesterday's trade, which is very high by any standard.
12. Though SBI shot up, the delivery based buying was less than 20%. So it was just short covering in F&O and day trading that saw huge volume yesterday.
13. So SBI may come under slight pressure if markets are negative.
14. OMC will be in focus due to petrol price hike.
15. Nifty broke out yesterday trapping the short sellers.
16. But once again Brexit fear will take over and Nifty may trade in the range of 8180 and 8220 for one or two more days.
17. Nifty future may trade between 8070 and 8300 until Brexit outcome on 23 June, 2016.
18. There was no surprise from BoJ and Asian markets have not recovered after BoJ announcement.
19. China shares not included in MSCI Emerging index, US not going for rate hike, progress of monsoon, intense discussion on GST, correction in Crude prices, all are good for India.
20. But markets will be volatile until next Thursday due to Brexit.
21. In the last minute, many people may change their mind and may say no to 'Brexit'.
22. But then by that time, the damage would have been done in stock markets.
23. Nifty future should take support at 8160.
24. Resistance will be at 8240.