Pre Market Report, September 12, 2016 | Stocks and Commodities

September 12, 2016
Time: 8.20 am

Pre Market Report:

1. US markets fell more than 2% due to North Korea nuclear news and US Fed rate hike news.
2. So Asian markets are all falling between 1% and 2%.
3. SGX Nifty closed about 80 points lower in Singapore on Friday night 11.30 pm when Dow was down by 250 points.
4. Later Dow fell another 150 points.
5. So SGX Nifty is trading around 8760.
6. Today is going to be a really very bad for the following reasons.
7. First, very bad Global cues due to rate hike fear, though the probability is very low for September hike.
8. Second, on Friday both FIIs and DIIs turned net sellers in Cash market, FII shave sold in F&O market also.
9. Third, tomorrow is a holiday. Today evening IIP and Inflation data are due. If Global markets fall tomorrow and if IIP and Inflation data are bad, then probability of another big gap down on Wednesday is very high.
10. This fear will drive the markets further down.
11. Fourth, as long as long term investors do not get panic, it is ok. SInce Nifty has shot up from 6800 to 9000, a lot of investors are sitting with huge profits and if they start booking profits, then only real problem will start.
12. Today there is no specific stockwise reason for market fall, all stocks will fall a bit but the impact will be higher in Nifty.
13. Markets may stabilise after a panic start.
14. As long as Nifty future is trading above 8750, this is just a normal correction.
15. We have to worry only when Nifty future start trading below 8750.
16. 8750 level is important as that was the last breakout level.
17. Usually last breakout level should become support level in the next leg.
18. But we are trading very close to that level and panic is evident, so the level may be breached intraday, we need to see whether markets close below this level.
19. IT and Pharma may not fall much but Banks may fall more.
20. Nifty future may trade between 8720 and 8820.