Pre Market Report, August 10, 2016 | Stocks and Commodities

August 10, 2016
Time: 8.15 am:

Pre Market Report:

1. US markets closed marginally higher after trading firm for most part of the day.
2. Asian markets are mixed.
3. Markets all over the world are consolidating post Brexit rally.
4. We need to see whether this will be a consolidation cum timewise correction or there will be some correction pricewise.
5. Technical parameters are not showing any bearish sign despite such a huge run up.
6. RSI is still hovering around 50, so it is not a overbought market.
7. FIIs keep buying in Cash market.
8. Market in August serieshas not gone anywhere.
9. Nifty is up just by 12 points in the last 8 trading sessions despite GST, US Jobs Data, BoE policy, RBI policy.
10. Though all other factors are very good, corporate results are not really good.
11. Most of the stocks are falling after the results.
12. Yesterday Lupin fell more than 5%.
13. Today M&M and Motherson Sumi will be in focus ahead of their results.
14. Since the beginning of this series, Nifty 8500 Put has the highest open interest among the Puts and Nifty 9000 Call has the highest open interest among Calls.
15. With most of the key events are over, Nifty is likely to trade between 8500 and 9000.
16. Any fall towards 8500 will be seen as buying opportunity as huge amount of money is lying on the sidelines.
17. Move towards 9000 will see huge profit booking.
18. Bank Nifty will be in focus for the next few days due to Bank of Baroda results on Thursday, SBI results on Friday, IIP and Inflation data on Friday, WPI Inflation data on Monday.
19. Yesterday though RBI did not cut the rates, arranged for huge liquidity.
20. In September, FCNR redemption may put pressure on Banks, if FIIs flow is like this and with RBI liquidity management, things should be alright.
21. If Nifty moves towards all time high, then this FCNR issue may become an excuse for the markets to correct.
22. SGX Nifty is trading slightly more than 8720 and that is a good sign.
23. Markets may be rangebound today as there are no big triggers.
24. Yesterday's low of 8660 should be an important level for this series.
25. If that is brokem, Nifty may correct to 8500 levels.
26. Similarly 8780 will face strong resitance and that is broken, expiry will be around 8900.
27. Today Nifty future may trade between 8680 and 8780.