Pre Market Report, August 12, 2016 | Stocks and Commodities

August 12, 2016
Time: 8.30 am

Pre Market Report:

1. US markets shot up once again.
2. After 17 years, Dow, S&P 500, Nasdaq, all three closed at all time high.
3. Crude oil prices were up and that helped the US markets.
4. Most Asian markets are higher.
5. But surprisingly SGX Nifty is trading flat after testing 8650.
6. In the last few days our markets are not following SGX Nifty.
7. After a very very long time I am finding something interesting in our markets.
8. One group of FIIs keep buying shares in Cash market at the rate of about 500 crores per day.
9. One group of DIIs keep selling shares in the Cash market at the rate of about 500 crores each day.
10. One group of FIIs keep selling stock futures at the rate of about 600 crores each day.
11. One group of FIIs keep buying options at the rate of about 600 crores each day.
12. In this series alone these figures work out to be between 5000 to 6000 crores in each segment.
13. Also markets have consolidated and not gone anywhere in the last 10 trading sessions.
14. India VIX is somewhere near 52 week low.
15. All these are happening during the very important month with lot of events like RBI policy, corporate results, BoE policy, etc.
16. So surely markets will breakout or breakdown in the next two weeks.
17. If that happens today afternoon, I will not be surprised.
18. Nifty need to move about 120 points higher for breakout or 120 points lower for breakdown.
19. It is at the centre place right now.
20. Monday is a India specific holiday, traders will square off their trades today afternoon.
21. SBI results will be out today and will be keenly watched after a disappointing day yesterday due to Bank of Baroda.
22. Sun Pharma, Hindalco and Divis Lab are the other two important results today.
23. Today evening IIP and CPI Inflation data will be out.
24. So all these will make traders jittery today afternoon.
25. I am expecting a rangebound trade in the morning and a sharp move in the afternoon.
26. My instinct says that the sharp move will be on the upside.
27. Of course, SBI results hold the key.