Pre Market Report, August 23, 2016 | Stocks and Commodities

August 23, 2016
Time: 8.50 am

Pre Market Report:

1. US markets closed mixed with Dow and S&P 500 ending in Red and Nasdaq ending in Green.
2. Asian markets are also mixed.
3. SGX Nifty is trading marginally lower around 8620.
4. Yesterday first time in the last one month FIIs have turned net sellers in Cash market.
5. They have sold for about Rs 300 crores.
6. However DIIs have turned net buyers thiugh in small quantities.
7. Shorting continue in F&O segment.
8. Nifty future has been closing between 8600 and 8700 in the August series.
9. We have only three more trading sessions.
10. So some big move on either side is expected.
11. Volatility will increse due to expiry related issues.
12. There are no major triggers, New RBI Governor appointment has become a non event.
13. This time analysts and market had opposite view.
14. Many analysts were telling that markets will move higher significantly, in fact many people said, markets will open gap up on Monday. But nothing has happened.
15. Infosys hit 52 week low within few months of hitting all time high.
16. Infosys is in the news for all wrong reasons.
17. Reliance has been under performing for the last 8 years.
18. Two of the top index heavyweights are doing very badly.
19. We still have three more trading sessions.
20. We need to see where the Nifty expires.
21. If it expires below 8666, then this will be the first series after March, Nifty will end in Red on monthly basis or series basis.
22. If it closes in Red, we can expect 4 to 5% correction in September as the correction is long over due.
23. In addition FCNR redemption will become an excuse for correction.
24. So it is time to trade with caution.
25. Markets will come under selling pressure if Nifty future breaks 8600.