Pre Market Report, August 3, 2016 | Stocks and Commodities

August 3, 2016
Time: 9 am

Pre Market Report:

1. US markets closed lower, Dow fell for 7 days in a row.
2. Though Dow fell for 7 days in a row, the total fall is just about 300 points.
3. A similar level index in India is Bank Nifty, which can fall that much just in intraday.
4. Asian markets are all lower except China which is just treading the water.
5. SGX Nifty is down by about 30 points.
6. FIIs keep buying in Cash market.
7. So medium to long term, surely our markets are bullish.
8. But there is heavy shorting in F&O by FIIs.
9. They are shorting the stocks and sell Put option in Nifty as hedge.
10. DIIs however continue to sell.
11. HCL Tech has come out with very good results.
12. So IT sector will be in focus today.
13. Yesterday it was ITC which saved the market.
14. Though global cues are not good, I do not think people will short and bring down the markets as GST is due by the end of the day.
15. GST bill will be tabled at 2 pm, there is a 5 hour discussion on the bill which may extend to 6 or 7 hours.
16. Finally voting will take place between 7 pm and 10 pm.
17. So there will be gap up or gap down tomorrow, so traders will like to square up their positions instead of creating new positions.
18. S&P 500 has been trading within a very narrow range for last 12 sessions which happened last time only in 1995.
19. So all over the world markets have consolidated within a very narrow range and may be in a day or two markets will break out or braek down all over the world.
20. Some trigger is required for either breakout or breakdown.
21. Bank of England policy meet on Thursday and US jobs data on Friday could well be those triggers.
22. By looking at the market set up here in India, probability of breakout is higher.
23. Look at the maximum open interest among Calls and Puts, among Calls maximum open interest is at 9000 which is 400 points away.
24. Among Puts, maximum open interest is at 8500 which is just 100 points away.
25. There are no important corporate results today.
26. Today it is all about GST.
27. Nifty future should take support at 8580 and resistance will be at 8740.