Pre Market Report, September 1, 2016 | Stocks and Commodities

September 1, 2016
Time: 8.20 am

Pre Market Report:

1. US markets closed marginally lower.
2. Crude oil fell more than 3% and that was the main reason for US fall.
3. We may see very good action today in our markets.
4. First, the GDP data that came lower than expected figure.
5. Core sector growth also came lower.
6. How market is going to take these figures is a billion dollar question.
7. 'Growth is slow and therefore markets should come down' is the pessimistic view.
8. 'Growth is slow and hence RBI may go for lower rates in the near future' is the optimistic view (for the markets)
9. China Manufacturing PMI came higher than 50 which shows that China economy is expanding not contracting.
10. Usually China is the party spoiler when markets are at peak, now the data from China is not bad.
11. China is flat and Hong Kong is higher, though it opened lower in the morning.
12. Next is Reliance AGM at 11 am.
13. Reliance fell by more than 20 rupees in the last half an hour of trade due to 'Gas Migration' issue with ONGC.
14. Cement stocks will be in limelight due to penalty of more than 7000 crores by CCI.
15. Around 10.30 am, India Manufacturing PMI data will be released.
16. Around the same time, Maruti will declare monthly sales data.
17. Auto stocks will be in focus after hefty price hike of petrol and diesel prices.
18. Auto and Cement stocks will also be in focus due to monthly sales data.
19. Most important of all, yesterday was the first day both FIIs and DIIs were net buyers in Cash market for more than 500 crores.
20. Last time both FIIs and DIIs have bought like this in the first few months of 2015.
21. We all know what happened during that time between January 2015 and March 2015.
22. Markets hit all time high in March 2015.
23. Even the Volatility index also indicates the same.
24. Yesterday Volatility index closed around 13, the last time it happened in December 2014.
25. Between 29th August intraday low and 31st August intraday high, Nifty future was up by 285 points.
26. This has happened when every technical analysts was bearish.
27. FIIs have taken huge long positions in F&O market also.
28. Another big event is US jobs data tomorrow.
29. Yesterday Private sector jobs data came in line with expectation.
30. SGX Nifty is trading almost flat due to uncertanties like Reliance issue, Cement issue, petrol price hike, not so good global cues, etc.
31. Weekly expiry of Bank Nifty options will also add to the volatility.
32. One thing is very clear, markets have brokenout decissively.
33. So buy on dips strategy will be good now.
34. I still hold my view that markets are likely to scale all time high by November.
35. Nifty future is likely to trade between 8780 and 8880.