Pre Market Report, June 29, 2016 | Stocks and Commodities

June 29, 2016
Time: 8.15 am

Pre Market Report:

1. US markets closed higher yesterday.
2. US markets have recovered the entire loss made on Monday.
3. So Asian markets are all trading in Green.
4. While we closed here Dow future was trading around 200 points higher but closed around 300 points higher at the end of US trading session.
5. So SGX Nifty is trading higher than yesterday's high.
6. But not everything is good.
7. For second day in row, both FIIs and DIIs have sold in Cash market.
8. That is a very big negative, that too it is happening very close to the expiry.
9. In F&O also, FIIs have shorted heavily.
10. At the same time, FIIs have bought options, both Put option and Call option, in huge quantities.
11. So generally speaking, markets are likely to make big moves today or tomorrow.
12. Remember in the last expiry, Nifty moved more than 300 points in the last few days of the expiry.
13. Generally FIIs are expecting that big move on downside due to selling in Cash market.
14. That is why they are short, but they would have bought 8200 Call in order to hedge.
15. But sometimes, markets do not favour the majority people and will move in the opposite direction.
16. Or markets may not make any big moves at all.
17. I expect Nifty to expire either close to 8050 or close to 8300 depending on the bi move comes on which side.
18. We need to see how European markets open in the afternoon.
19. Right now their futures are trading almost flat.
20. Monsoon progress has been very good so far.
21. Seventh Pay Commission noise is very loud.
22. Hope of GST is also rising as even Kerala supports GST.
23. Quarterly results expectation will also be high.
24. So if global cues do not spoil the party, then I expect the Nifty to move beyond 8300 after the expiry.
25. Today and tomorrow, it is all about F&O.
26. Today Nifty future may trade between 8120 and 8220.
27. Tomorrow I will not be surprised if Nifty expires around 8300 or around 8000.