Pre Market Report, July 5, 2016 | Stocks and Commodities

July 5, 2016
Time: 8.30 am

Pre Market Report:

1. Yesterday US markets were closed.
2. So no big global cues.
3. European markets fell yesterday after rising for 5 consecutive days.
4. Asian markets are all marginally down except China.
5. China is slightly higher.
6. SGX Nifty is trading about 20 to 25 points lower.
7. Yesterday both FIIs and DIIs were net buyers in Cash market.
8. That is a very good sign.
9. Nifty was up by nearly 1400 points in the last few months and yet DIIs are buying, that shows the underlying strength of the market.
10. When was the last time we saw HNI segment of a public issue subscribing by a whopping 400 times.
11. Quess corp public issue HNI segment was subscribed by 397 times.
12. IPOs are going to create history.
13. The liquidity at this point of time seems to be very good.
14. Today our markets may open lower due to global cues.
15. But any fall of more than 50 points in Nifty will be used as an opportunity to buy.
16. Nifty rose for 6 days in a row and about 500 points gain.
17. So consolidation or minor profit booking nay be due.
18. Yesterday itself this was evident.
19. Though markets were up, Nifty future premium has come down.
20. Call option prices fell despite markets moving higher.
21. All these point to consolidation or minor profit booking in the near term.
22. But monsoon progress has been very good.
23. So there will be no meaningful fall in the markets in the near term.
24. Nifty future may trade between 8320 and 8420.
25. The action will be out side the Nifty.