Pre Market Report, June 22, 2016 | Stocks and Commodities

June 22, 2016
Time: 8.30 am

Pre Market Report:

1. Yesterday US markets closed positive.
2. But Asian markets are mixed.
3. SGX Nifty is volatile between 8190 and 8220.
4. China and Hong Kong opened lower but recovered.
5. China is trading slightly in Green and Hong Kong slightly in Red.
6. Yesterday FIIs have bought for Rs 484.66 crores in Cash market which is very positive.
7. However DIIs have sold for Rs 335.53 crores.
8. They may be selling in order to raise cash so that they can support the markets on Friday if markets fall.
9. Brexit is similar to Lehman Brothers, the effect will be very high.
10. Only thing now is that it can be on either side.
11. Nifty has been trading within 200 points range, so surely Nifty will either break out or break down.
12. Nifty is positioning somewhere in the middle of the range ahead of the event.
13. So it is wise to hedge the folio at the same time keep the possibility of markets moving higher.
14. Our markets are too bullish and the action is shifting to midcaps.
15. Yesterday all textile stocks shot up.
16. One day, it is textile, one day monsoon related, one day NBFC stocks, etc.
17. Two days before, when there was a rumour of Nigeria currency devaluation, Bajaj Auto fell.
18. But after that when Nigeria actually devalued its currency by a whopping 23%, Bajaj Auto actually shot up.
19. So sometimes, things may happen this way.
20. Who knows? Our markets can actually go higher even if there is Brexit.
21. Tata Motors is hitting fresh 52 week high almost everyday despite the fact that this is the share that will be affected the most by Brexit.
22. Tata Motors will lose about US$1.5 billion every year if Brexit happens.
23. Right now, SGX Nifty is trading slightly higher at 8226, use any up move to buy the Puts
24. Nifty future is likely to be highly volatile, India VIX is likely to move higher.
25. Nifty future is expected to trade between 8180 and 8280.