Pre Market Report, June 21, 2016 | Stocks and Commodities

June 21, 2016
Time: 8.30 am

Pre Market Report:

1. Nobody expected such a bullish close yesterday.
2. But I did mention that we had two good news (1. Brexit, 2. Monsoon) and one bad news (Rajan's exit). So positives out weighted the negatives.
3. SBI reportedly entered forex markets and LIC equity markets in order to stabilise in the first few minutes of trading.
4. That is why DII buy figures are very good at over Rs 700 crores.
5. Usually LIC does not enter markets when markets were up by more than 10% in the last few months.
6. Once markets stabilised, Brexit related shorts have gone for cover.
7. Short covering led the markets higher.
8. I expected Nifty future to find resistance between 8180 and 8220, but there were few more opinion polls in BritanUK showed the 'In' group is gaining momentum in Brexit poll.
9. Due to these reports, Europe opened around 3% higher and triggered further short covering in Nifty future.
10. Govt. of India announced some measures in FDI and that also supported the bulls.
11. Yesterday I said I will write "Dalal Street Week Ahead" report yesterday evening.
12. But I did not write due to the lack of time and anyway there is nothing to write except "Brexit"
13. Only "Brexit" fer (or Greed) will drive the markets in this week.
14. Today Asian markets are mostly higher.
15. SGX Nifty is trading slightly lower as US markets gave up half of the gains made in the morning by the end of the day.
16. FIIs were net sellers in Cash market for Rs 537.46 crores and they were sellers in F&O markets as well.
17. Yesterday Bank Nifty under performed the Nifty.
18. IT stocks were up as Rupee fell.
19. Markets are likely to consolidate after yesterday' gain.
20. Markets will be nervous ahead of Brexit.
21. Clear trend will emerge only after Brexit.
22. I am cutting down my long positions using this rally.
23. Nifty future is expected to trade between 8200 and 8300 today.