Pre Market Report, August 4, 2016 | Stocks and Commodities

August 4, 2016
Time: 8.50 am

Pre Market Report:

1. US markets closed higher, Dow closed in Green after 7 days of Red.
2. But Asian markets are mixed.
3. SGX Nifty is trading around 8620 after hitting a high of 8650.
4. We need to see how this GST news will be influencing the markets.
5. FIIs continued to buy in Cash market and they have bought for Rs 578 crores.
6. DIIs have sold for Rs 801 crores.
7. This time DII selling seems to be very high.
8. I have not seen this kind of selling by DIIs in the last many years.
9. There are four key events in one week time.
10. First GST which was over and positive for markets.
11. Second, BoE policy meet today evening.
12. Third, US jobs data tomorrow.
13. Fourth, RBI policy next Tuesday.
14. So we need to see how these four events affect the markets.
15. Markets all over the world are in consolidation mode and breakout or breakdown is sure in the next few days.
16. Markets may or may not move higher significantly today, but surely India VIX is likely to fall and hence option premiums may collapse.
17. There are no key corporate results today.
18. GST is positive for Auto and Cement sector. Though logistic and media are positive, none of those stock are present in Nifty 50.
19. So watch for Maruti, Tata Motors and other Auto stocks.
20. Cement stocks will also be in focus.
21. It is difficult to predict a range post such a big event.
22. I am bullish in the medium term, correction, if any will be either timewise or shallow pricewise.
23. My target for Nifty is 9100 by October end.
24. So if markets correct, I am looking to sell Put options of stikr 8000 and below, may be in September or October series.
25. I feel that 8000 is a strong support even in the medium term.