Pre Market Report, August 16, 2016 | Stocks and Commodities

August 16, 2016
Time: 8.30 am

Pre Market Report:

1. US markets yesterday closed at all time high, second time in leass than a week.
2. So Asian markets sentiment is good.
3. On Fridat Nifty future 8672.
4. Now SGX Nifty is trading at 8712 which is 40 points higher.
5. More importantly, SGX Nifty is trading higher than Friday's intraday high.
6. IIP data on Friday evening was better and Inflation was little more than 6%.
7. But analysts are not worried, they are of the view that it will go below 6% in the next month.
8. Infosys may come under pressure as they have cancelled a contract leading to rentrenchment of 3000 employees.
9. But Infosys ADR did not fall after this news, in fact it was up by 0.4%.
10. Auto sector will be in focus as Petrol and Diesel prices were cut yesterday.
11. Nifty 8500 Put continue to have highest open intetest among Puts.
12. Nifty future is trading in the band 8500 and 8750.
13. Breach of this band only markets are expected to move significantly.
14. There are only 4 trading session this week and there are no triggers.
15. Only global cues will decide the market movement.
16. Nifty future is likely to trade between 8660 and 8750.
17. Fridays trade was a turround trade for the following reasons.

• Even at this high level, FIIs have bought for Rs 1000 crore in Cash market, highest in this month.
• DII selling has slowed down to some extend, they have sold little over Rs 300 crores while they were selling for more than Rs 500 crores every day in the last two weeks.
• Most important change came from FIIs stock future positions, everyday they were selling for more than Rs 600 crores but on Friday they bought for more than Rs 600 crores.
• FIIs have huge short positions in stock futures, nearly Rs 7500 crores of short positions as on 11.08.2016.