Pre Market Report, July 7, 2016 | Stocks and Commodities

July  7, 2016
Time: 8.15 am

Pre Market Report:

1. On Tuesday night (Indian Time), some property funds in UK suspended redemption due to panic redemption.
2. Crude oil fell by 5%.
3. That created fear among the investors and markets fell all over the world.
4. SGX Nifty hit a low of 8271.
5. This is lower than last expiry closing of 8288.
6. Remember in June, Nifty future did not fall below May expiry level on closing basis.
7. So if we are really bullish, Nifty future should not close below 8288.
8. US markets closed higher after Fed minutes.
9. US is not likely to raise rates for next two years.
10. As usual we have very strong local cues and very bad global cues.
11. We have three very important things in our favour.
12. One, Monsoon, the progress has been very impressive.
13. In July, monsoon rains were 40% higher than the normal.
14. Due to this 25% of deficiency in monsoon rains by end of June, has been wiped out.
15. Now we have monsoon rains which is 1% above normal.
16. Second, GST. The passage of historical event is likley to happen in the third week of July.
17. Now the numbers are in favour of BJP, we need to see how Congress is going to handle this.
18. Unless Congress uses some kind of violence to disrupt the Parliament proceedings, GST bill will be passed.
19. Third, the most important, bread and butter issue, is the corporate results.
20. Next week will be the beginning of corporate results season with IndusInd Bank declaring results on July 11.
21. Many frontline companies will declare results by the end of this expiry.
22. So as long as Global cues are not very bad, we will consolidate for few more days and will resume the uptrend.
23. Axis Bank will be in focus as FII limit has been increased.
24. Even when markets were sluggish on Tuesday, many high beta stocks were clearly set uptrend.
25. Anil Ambani stocks, JP Associates, GMR Infra, Unitech, Auro Pharma are some examples.
26. We need to see how European markets open this afternoon.
27. Nifty future is likely to trade between 8280 and 8380.