Pre Market Report, June 7, 2016 | Stocks and Commodities

June 7, 2016
Time: 8.30 am

Pre Market Report:

1. US markets closed higher after Janet Yellen's comment.
2. US markets closed somewhere near all time high.
3. Asian markets are mostly higher.
4. SGX Nifty is trading around 8280, which is higher than yesterday's high.
5. Technically that is a bullish sign.
6. However there will be volatility before RBI policy.
7. In fact volatility may continue until press meet of RBI as no one is expecting anything from RBI policy.
8. People are focussing on what RBI Governor is going to say about future course of action.
9. Once RBI policy is over markets will focus on monsoon.
10. If Nifty future trades firmly above 8280, then it will be trading between 8280 and 8320 before next break out.
11. Next break out may come after US Fed policy next week.
12. By the end of next week, I am expecting Nifty future to trade in the region 8380-8420, if there are no negative surprises and if the progress of the monsoon is good.
13. Then Brexit will decide the direction of markets all over the world.
14. There will be frequent profit booking and hence volatility may be there.
15. Monsoon related stocks are likely to do well.
16. Direct related stocks like seeds, fertiliser and chemical stocks have gone up already.
17. Now it may the turn of indirect beneficiaries like two wheeler, four wheeler, micro finance companies, FMCG, etc.
18. Banking stocks will be in focus ahead of RBI policy.
19. Stocks like M&M, Bajaj Auto will be in focus due to monsoon.
20. Nifty future may trade between 8220 and 8320 today.
21. I am bullish and long in the following stocks.

       Bajaj Auto, M&M, Maruti, Tata Motors in Auto sector.

       Auro Pharma in Pharma.

       HDFC and LIC Housing in Housing Finance.

       SBI in Banking.

       Sold 1300 Put option in JSW Steel in metal sector.

       Little quantity (just 1000 shares) in Reliance and Infosys.

       

Please remember this is not my recommendation. I have acquired these stocks during the last two months at lower levels.

In addition, I have Nifty future as well as Bank Nifty futures.

All my positions will have some hedging through Nifty Call options and Stock Call options.

In addition, I sold Put options of strikes 8000, 7900, 7800, 7700, 7600 and 7500 as I am expecting Nifty not to fall below 8000.