Pre Market Report, July 26,2016 | Stocks and Commodities

July 26,2016
Time: 8.40 am

Pre Market Report:

1. US markets fell after a long rally for 4 weeks.
2. But it was just a consolidation. Yahoo fell more than 3% due to take over talks and Nintendo fell more than 10% as Pokemon GO is not likely to give as much profit as thought by investors.
3. But Asian markets are mixed.
4. China, Hong Kong, Indonesia are up while SIngapore, Japan and Australia are down.
5. SGX Nifty is trading around 8650, an increase of about 10 points from yesterday's close.
6. Yesterday PSU Banks led the rally rising by 3.6%.
7. Canara Bank results were not as bad as expected and that will boost PSU Banks.
8. Despite poor results, Axis Bank closed in Green after falling as much as 10% in the pre market.
9. ACC, Maruti and DrReddy will be in focus today ahead of Q1 results.
10. Earlier I have mentioned that the trading range has been shifted from 8400 - 8600 to 8500 - 8700.
11. Now Nifty 8500 Put has the highest open interest among Puts and 8700 Call has the highest open interest among Calls.
12. But markets tend to make some big moves in the last two to three days in the expiry week.
13. Some negative news start coming from GST front.
14. But huge FII buying of Rs 891 crores and slowed down selling by DIIs of just Rs 68 crores may keep the momentum on the upside.
15. FIIs are however net sellers in F&O market, may be due to profit booking.
16. The rally was mainly due to Auto and Banking stocks.
17. Yes Bank will be in action ahead of its results tomorrow.
18. Asian Paints, ZEEL, Yes Bank, HDFC, BPCL, IndusInd Bank, UltraTech and Tata Motors are the Nifty shares that hit 52 week high yesterday.
19. Asain Paints and Ultra Tech joined the Rs 1 Lakh crore market cap club.
20. Overall market sentiment is very good, shallow correction may be possible, volatility may be possible, but deep correction may not happen.
21. So buy on dips strategy may work for traders.
22. Nifty future may trade between 8600 and 8700.