Pre Market Report, August 29, 2016 | Stocks and Commodities

August 29, 2016
Time: 8 am

Pre Market Report:

1. On Friday, Janet Yellen said that the case is strengthening for a rate hike.
2. But markets ignored and shot up.
3. SGX Nifty hit a high of 8671.
4. Later Deputy Chairman of Fed, Mr Fischer said there is a possibilty of two rate hikes by the end of this year depending upon the data flow, particularly jobs data to be released on September 2.
5. Then markets fell in US and SGX Nifty fell nearly 100 points from 8671 to 8572.
6. Later US markets recovered to some extent.
7. Most Asian markets are down but Japan is up by more than 2%.
8. SGX Nifty is highly volatile, traded between 8595 and 8634.
9. We need to see how FIIs are going to react to this news.
10. Personally I feel that if there is any outflow, more will be from bond market and only a little from equity markets.
11. Auro Pharma will be in focus as it is bidding for Teva.
12. Reliance will be in focus ahead of AGM.
13. Maruti will be in focus as Japanese Yen is likely to depreciate when dollar rises.
14. Auto and Cement stocks will be in focus in the next few das as monthly sales data will be out on Thursday.
15. Nifty future is likely to take support at 8560.
16. There will be more Cash based selling if Nifty (spot) falls below 8500.
17. Option writers are still taking a bullish view.
18. We need to see the FII buy/sell figures at the end of today to know FII view about Janet comments.
19. Everyone was afraid of Brexit but markets shot up after a temporary blip.
20. Who knows? Long term investors may use this kind of negative news to buy the shares in bulk without altering the price.
21. So far Asian markets reaction is not very bad for Janet's comments.
22. The volatility may go down a little bit as the Yellen's comment is over.
23. Volatility may go higher towards the end of this week as we approach US jobs data.
24. PSU Banks have been under performing in the last few days.
25. If there is more FII selling, then DIIs will step in and then PSU Banks may see action.
26. Nifty future may trade between 8560 and 8680 today.