Pre Market Report, July 22, 2016 | Stocks and Commodities

July 22, 2016
Time: 8.50 am

Pre Market Report:

1. US markets closed lower after making all time highs for last many days.
2. Most Asian markets are down.
3. But we were down yesterday while Asian markets were up.
4. Yesterday markets were not happy with HDFC Bank and Kotak results.
5. So people started booking profits in Axis and ICICI as they expect these two also to declare not so good results.
6. Selling was high in Axis as it comes out with results today.
7. Despite all these commotions, FIIs have bought for over Rs 400 crores in Cash markets.
8. They were net buyers in F&O also.
9. DII selling has slowed down.
10. So how we need to intrepret yesterday's fall which was significant in Bank Nifty.
11. Is this normal volatility or trend reversal.
12. I will take this as trend reversal only when Nifty breaks below 8480.
13. Until then I am just seeing this as consolidation before making a big move.
14. I was expecting the breakout above 8600 if HDFC Bank, ITC results were good.
15. But that has not happened, now I have little hope of break out rally in this series.
16. Corporate results so far has not been impressive, GST bill is getting delayed, Bank of Japan, ECB did not announce any fresh stimulus.
17. But whether it is of GST, Bank of England, ECB, there are all postponed, not denied.
18. So the action may be shifted to August series.
19. In July, Nifty may trade between 8400 and 8600.
20. For Bank Nifty, Axis Bank results is the key today.
21. Bank Nifty upside is capped at 19200.
22. I have sold Call options of 19200, 19300, 19400 and 19500 yesterday.
23. SGX Nifty is trading at 8533 now (8.50 am)
24. Today Nifty future should take support at 8480.
25. Resistance will be at 8605.