Pre Market Report, August 31, 2016 | Stocks and Commodities

August 31, 2016
Time: 8.35 am

Pre Market Report:

1. No news, No triggers, yet markets broke out yesterday when nobody expected.
2. The only trigger was the FII buy despite Janet Yellen's comment about rate hike.
3. Yesterday it was DIIs day.
4. They have bought for Rs 485 crores much higher than FII buy figure of Rs 390.
5. This higher figure of DII buy happening after a long time and after huge selling by DIIs for the past one month.
6. FIIs are net buyers in F&O for huge amount.
7. US markets closed marginally lower due to Apple tax dispute with Irish Govt.
8. So Asian markets are mixed.
9. After the break out yesterday, markets may consolidate today with a narrow range.
10. Auto stocks may see action ahead of monthly sales data.
11. Maruti, Bajaj Auto hit all time high.
12. Tata Motors hit 52 week high.
13. IT stocks turned around.
14. Infosys is down 20% in the last three months and TCS is down by 10%.
15. These two are index heavy weights.
16. Yet markets closed at 16 months high.
17. Imagine if these two stocks recover the losses, where will the index be.
18. One person got so angry with me when I said Nifty is likely to hit all time high by November.
19. He even said I am instgating retail people to commit suicide.
20. He said telling 'Nifty will hit all time high by Novemebr' is equivalent to 'commiting suicide'.
21. Remember mid cap index is already trading at all time high.
22. It is only large cap that has been under performing.
23. Nifty levels are based on large caps.
24. The action is actually more outside the index.
25. Surprised to see Nifty 9200 Call is trading at Rs 8 even in September series.
26. So experts have to keep two things in mind.
27. One, never judge the market, it can do anything.
28. Second, focus on risk, keep the risk management robust no matter what happens.
29. Today RBL bank will be listed, that may add to positive sentiment in banking stocks.
30. Nifty future may trade between 8760 and 8740.