Pre Market Report, June 3, 2016 | Stocks and Commodities

June 3, 2016
Time: 8.30 am

Pre Market Report:

1. US markets closed slightly higher after opening lower in the morning.
2. Asian markets are mostly higher.
3. SGX Nifty is trading around 8265 which is higher than yesterday's high.
4. This is technically indicating a strong market.
5. This is significant as the break out happens after a huge rally of 500 points in Nifty followed by just three days of consolidation.
6. Only yesterday I became less bullish due to various factors like the delay in monsoon announcement by IMD.
7. But yesterday afternoon the news came from IMD.
8. IMD said the official onset of monsoon is just days away and monsoon will be very good this time.
9. They said there is zero probability of deficit monsoon this time.
10. That was the trigger for the market breakout above 8200.
11. Now maximum open interest among Calls is at 8400 and hence that becomes the target for this series.
12. So Nifty is likely to trade between 8000 and 8400 until the end of this month.
13. Markets are not likely to rise significantly today as we can expect some profit booking in the late afternoon trade.
14. Traders will like to square up their trades ahead of key US jobs data today evening and due to week end holidays tomorrow and day after tomorrow.
15. Nifty future will find some resistance at 7280 today.
16. Today Nifty is likely to trade between 8180 and 8280.
17. If Nifty future trades below 8200, then we can consider selling Nifty 8000 Put option.
18. Though Nifty broke out, Bank Nifty is still below 17600.
19. Two days before it was at 17620.
20. So if market rally continue, Banking stocks, particularly PSU Banks will catch up.
21. Services PMI data will be out at 10.30 am today.
22. Agriculture related stocks and rural related stocks will do well today.
23. Among the auto stocks, Maruti and M&M will do better.
24. Reliance will be in focus for next few days as it has been beaten down and Reliance is launching 4G phones.
25. Nifty future may open around 8260 and may move towards 8280 in the afternoon and there may be some sharp move on either side towards the end of the day.