Pre Market Report, August 18, 2016 | Stocks and Commodities

August 18, 2016
Time: 8.45 am

Pre Market Report:

1. US markets closed higher after trading lower for most part of the trading session.
2. Fed minutes indicated that though some members want earlier rate hike, the general consensus was to wait for more data.
3. Asian markets are generally higher.
4. Hong Kong is firmly in Green as China will allow more foreiners to invest in China markets through Hong Kong.
5. SGX Nifty is trading around 8660 about 30 points higher.
6. Yesterday there was no significant buy by FIIs or significant selling by DIIs as everyone took break due to Fed minutes.
7. Markets were trading in sideways mode for the last two weeks.
8. Now showing huge volatilty within that range for the last two days.
9. This is an indication that market is likely to break out or break down soon.
10. We can expect the breakout or breakdown in the next two to three trading sessions.
11. Eveyone is waiting for correction and that is not coming.
12. Correction is not coming just because everyone is expecting.
13. There are no important corporate results today.
14. Bank Nifty has been out performing Nifty in the last two days.
15. That may continue today also.
16. IT index is doing well due to RBS contract cancellation to Infosys.
17. Reliance is under pressure as expected launch of Reliance Jio did not happen on 15th August.
18. I plan to go long if Nifty crosses 8720 and to cut my existing positions if Nifty falls below 8520.