Pre Market Report, August 2, 2016 | Stocks and Commodities

August 2, 2016
Time: 9 am

Pre Market Report:

1. US markets once again closed mixed.
2. For the past many days, Dow keeps going down and Nasdaq keeps going up.
3. Asian markets are mostly down.
4. Asian markets are waiting of Reserve Bank of Australia’s policy decision.
5. SGX Nifty is almost flat with negative bias.
6. Hong Kong market is closed due to heavy rain for the first half of the session.
7. Yesterday Nifty closed slightly lower on provisional closing basis and slightly higher on actual closing basis.
8. This is despite L&T and ICICI contributing 36 points for Nifty’s fall.
9. Banking underperformed due to ICICI results.
10. Even PSU Banks fell due to poor results of ICICI.
11. But IT and Auto sectors did very well.
12. IT did well despite appreciating rupee.
13. Today Tech Mahindra and Indian bank results will be watched keenly.
14. Many auto stocks hit all time high, Bajaj is set to launch 400 CC bike this month.
15. Now GST bill will be tabled tomorrow, delayed by one day, may dampen the sentiment in the very short term.
16. But good thing is that Congress is giving enough indication that it will support the bill.
17. Crude oil has fallen by more than 3% and that was the reason for the sluggishness in world markets.
18. If that is the case, fall in crude prices is actually good for India and our markets should out perform in the short term.
19. Yesterday the volatility was very high and no one expected intraday fall of nearly 120 points in Nifty.
20. Markets may consolidate within a range but with volatility in the short term.
21. Nifty future may trade between the yesterday’s low and high as yesterday’s range was very wide.
22. Breakout or breakdown is not expected today.