Pre Market Report, July 19, 2016 | Stocks and Commodities

July 19, 2016
Time: 8.30 am

Pre Market Report:

1. As expected markets are in consolidation mode.
2. That is due to the fact that there are no triggers.
3. Monsoon is not a new trigger.
4. GST bill will not go through this week.
5. Good corporate results are expected from Banks which are due from Thursday onwards.
6. So I expected markets to consolidate for the first three days of this week.
7. But FIIs keep buying.
8. They are buying in huge quantities in F&O also.
9. Last March Nifty hit all time high and now FII buying in F&O is highest after March 2015.
10. So this is just a consolidation and markets are likely to move higher after few days.
11. Still 8900 Call has open interest more than 30 lakh shares.
12. I remember last two weeks before, Weekly option of Bank Nifty 18300 Call, I bought for Rs 16 and sold for Rs 245 but closed at 550.
13. So if markets consolidate with a negative bias for one or two more days, one can consider buying Call option, if there is some positive development in GST, next week markets will shoot up.
14. In addition Axis Bank, HDFC Bank, Kotak Bank will declare results on Thursday and Friday which will move Bank Nifty.
15. Auto and Banking sector are likely to declare good results.
16. Wipro and Ultra Tech will declare results today.
17. Yesterday's intraday fall of 90 points in Nifty scared weak bulls.
18. And that is good, weaker hands should get out for a healthy bull run.
19. Nifty future should take support at 8480 during this consolidation period.
20. Stiff resistance will be at 8620.
21. Once 8620 is crossed, Nifty future may move to 8800 swiftly in two trading session on any good news about GST.
22. May close was not breached in June, June close was not breached in July so far, by looking at the FII data and F&O data, the trend is likely to continue.
23. I expect the Nifty to scale all time high in the next few months.
24. Today Nifty future may trade between 8480 and 8605.