Pre Market Report, July 18, 2016 | Stocks and Commodities

July 18, 2016
Time: 8.45 am

Pre Market Report:

1. World market players were nervous during the weekend due to Turkey military coup on Friday night.
2. Turkish ETF in US fell 6% and US futures were down by half a percent on Friday night in US.
3. But the military coup did not succeed in Turkey and Asian markets are in relief.
4. SGX Nifty is trading around 8580.
5. This is due to positive Asian cues and very good results from Reliance over the weekend.
6. Infosys results put a speed breaker for the rally.
7. GST bill will also be on table not very soon.
8. It may be tabled next week.
9. So until next set of key corporate results, our markets may consolidate.
10. Today HUL will be in focus ahead of results.
11. Tomorrow Ultratech will declare results.
12. Thursday will be very important as Kotak Bank and HDFC Bank come out with results.
13. FIIs keep buying in Cash markets and so far this series they have bought close to Rs 10,000 crores.
14. They are taking bullish view even in F&O.
15. Technical indicators show that markets are in heavily over bought condition.
16. So technical people are expecting some correction.
17. But markets are not obiliging them.
18. In fact on Friday, though Infy fell by 9%, still Nifty fell just 25 points.
19. In fact, if we remove Infy, Nifty was up by 35 points.
20. Bank Nifty was up despite Infy falling so much.
21. Despite markets are at over bought levels, short sellers do not have courage to short sell.
22. So in my opinion, markets will correct timewise rather than pricewise.
23. So markets may consolidate with stock specific movements due to corporate results until GST issue gets clarity.
24. Today Nifty future may trade between 8520 and 8620.
25. Initially my target was 8700, later I siad the target could be above 8900 if the bullish trend continues.
26. Now 8900 is out as Infy will not contribute to the rally and entire IT pack is dragging the markets down.
27. So 8700 is just 120 points away from where SGX Nifty is trading right now and just 80 points away from this series high and we have 9 more trading sessions.
28. So 8700 looks to be easier target and GST holds the key.