Pre Market Report, June 20, 2016 | Stocks and Commodities

June 20, 2016
Time: 8 am

Pre Market Report:

1. I could not write 'Pre Market Report' on Friday as was busy with some personal work.
2. I could not write 'Dalal Street Week Ahead' artcle also yesterday as I was in my village.
3. Today evening I will write that.
4. Over the weekend when I was out of station some key events have happened.
5. First, the shocking news from RBI Governor that he is leaving RBI.
6. Many people including leading news papers were very beraish about our markets today.
7. Economic times predicted a fall of 100 to 150 points fall in Nifty.
8. First, the news itself was not that shocking.
9. To some extent many people expected this.
10. In fact earlier there were reports that said RBI Governor had decided to leave and had already shifted his family to US.
11. An interview for an RBI post was conducted by Finance Secretary instead of RBI Governor.
12. In between RBI Governor himself stated that his lone term ambition is to return to Academics.
13. So the news was not that shocking though the manner with which it has been handled was little bit disappointing.
14. Second major event. the opinion polls over the weekend in UK indicates that the 'Remain' group is gaining momentum in 'Brexit' referendum.
15. Due to this major shift, Asian markets are up.
16. This may limit the downside due to RBI Governor issue.
17. Third big event, monsoon has progressed very well over the weekend.
18. Now it is raining in Mumbai since yesterday.
19. So in simple terms, we have one bad news and two good news.
20. So even if markets fall as a knee jerk reaction, markets are likely to stabilise after some time.
21. The focus will be more on 'Brexit'.
22. SGX Nifty is trading between 8100 and 8120.
23. As long as Nifty future holds 8080, there will be some buying at lower levels and markets will try to recover during the day.
24. There may be more bearishness if Nifty future breaks 8080, in that case, Nifty future will move towards 8020.
25. But thta may not happen today.
26. To some extend, RBI Governor issue was factored in during Friday's trade when our markets hugely under performed the world markets.
27. It seems that some market men knew this news by Friday itself.
28. Maruti will be in focus as Yen depreciated slightly and Japan markets are doing very well.
29. Tata Motors will be in focus as Brexit fear eases.
30. Auro pharma will be in focus, this stock is falling despite so many good news. It seems that some people are accumulating.
31. Energy stocks will also be in focus as Crude prices rebound.
32. IT stocks will be in focus as Rupee is likely to depreciate by 20 paise to 40 paise due to RBI Governor issue.
33. Markets will be highly volatile, particularly Banking stocks.
34. If the volatility is not very high, then Nifty future should take support at 8080.
35. Resistance will be at 8180.