Pre Market Report, July 12, 2016 | Stocks and Commodities

July 12, 2016
Time: 8.30 am

Pre Market Report:

1. Markets were in correction mode last week.
2. Nifty future hit a high of 8415 on July 4.
3. Yesterday markets opened gap up giving no chance for short sellers to close positions with profit.
4. But after a huge gap up, Nifty traded within a small range of 30 points without giving any chance for intraday traders.
5. So only positional traders with long positions got a better deal.
6. FIIs have bought shares for more than 1000 crores in Cash market.
7. DIIs have sold for little over 600 crores.
8. This is a big positive for markets.
9. FIIs were net buyers in F&O also.
10. There was a huge addition of open interest of more than 24 lakh shares at 8400.
11. Highest open interest is still at 8200.
12. US markets though closed at all time high, there was significant selling in the last one hour of trade.
13. Japan index Nikkei shot up by more than 1000 points in just two days.
14. Nifty future should consolidate between 8480 and 8520.
15. If Nifty futures trade decisively above 8520, then next target will be 8580.
16. But we may need some trigger for that.
17. Today we do not have any trigger.
18. Bank Nifty will be in focus ahead of Inflation data (CPI today evening and WPI tomorrow)
19. L&T will be in focus and L&T Infotech fully subscribed on day 1.
20. HDFC will be in focus as it is the first company to raise 3000 crores through Masala bonds.
21. Coal India will be in focus as buy back price is very good. (Anyway 90% of this buy back will go to Govt.)
22. Results season started very good with very good results from IndusInd Bank.
23. Yet IndusInd Bank did not close higher.
24. We need to ignore the price movement on the day of results.
25. We need to see how the price moves in the next one or two days.
26. Remember ICICI Bank closed positive last time on the day of results but fell more than 10% in the next few days.
27. As I said earlier, Nifty has the potential to expire around 8700 this month, still Reliance, TCS and Infosys are all trading much lower than April 2016 prices.
28. They may catch up after the results, but who knows they may rise due to short covering ahead of their results on Friday and Saturday.
29. Quess Corp listing will add to the positive sentiment today.
30. It may list with 50% premium between 450 and 500 against issue price of 317.
31. There may be an announcement of new RBI Governor today.
32. Nifty future is likely to trade between 8480 and 8530, if 8530 is breached that is the time to go long with a stop at 8480.