July 12, 2016
Time: 8.30 am
Pre Market Report:
Time: 8.30 am
Pre Market Report:
- Markets were in correction mode last week.
- Nifty future hit a high of 8415 on July 4.
- Yesterday markets opened gap up giving no chance for short sellers to close positions with profit.
- But after a huge gap up, Nifty traded within a small range of 30 points without giving any chance for intraday traders.
- So only positional traders with long positions got a better deal.
- FIIs have bought shares for more than 1000 crores in Cash market.
- DIIs have sold for little over 600 crores.
- This is a big positive for markets.
- FIIs were net buyers in F&O also.
- There was a huge addition of open interest of more than 24 lakh shares at 8400.
- Highest open interest is still at 8200.
- US markets though closed at all time high, there was significant selling in the last one hour of trade.
- Japan index Nikkei shot up by more than 1000 points in just two days.
- Nifty future should consolidate between 8480 and 8520.
- If Nifty futures trade decisively above 8520, then next target will be 8580.
- But we may need some trigger for that.
- Today we do not have any trigger.
- Bank Nifty will be in focus ahead of Inflation data (CPI today evening and WPI tomorrow)
- L&T will be in focus and L&T Infotech fully subscribed on day 1.
- HDFC will be in focus as it is the first company to raise 3000 crores through Masala bonds.
- Coal India will be in focus as buy back price is very good. (Anyway 90% of this buy back will go to Govt.)
- Results season started very good with very good results from IndusInd Bank.
- Yet IndusInd Bank did not close higher.
- We need to ignore the price movement on the day of results.
- We need to see how the price moves in the next one or two days.
- Remember ICICI Bank closed positive last time on the day of results but fell more than 10% in the next few days.
- 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.
- 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.
- Quess Corp listing will add to the positive sentiment today.
- It may list with 50% premium between 450 and 500 against issue price of 317.
- There may be an announcement of new RBI Governor today.
- 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.
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