Pre Market Report, September 2, 2016 | Stocks and Commodities

September 2, 2016
Time: 8.30 am

Pre Market Report:

1. US markets were volatile and closed mixed.
2. Fall in Crude oil prices and weak Manufacturing PMI and uncertainty about Jobs data to be released today evening all taking toll in US markets.
3. Most Asian markets are cautiously optimistic.
4. Today evening, US jobs data will be released and that will be the key event of this month.
5. If the figure in too high, then markets will fall as the rate hike will happen sooner than expected.
6. If the figure is too low then also markets will fall as the economic growth is slowing down.
7. So a figure between 1,60,000 and 2,00,000 is needed for the stable market.
8. Let us see what the figure is at 6 pm Indian time.
9. Yesterday markets consolidated as expected.
10. Nifty fell just 11 points but Nifty future shed lot of premium during the day.
11. The fall in Nifty was mainly due to Telecom stocks which fell due to Jio announcement.
12. Bharti Airtel and Idea alone contrbuted 30 points for Nifty fall.
13. If not for these two stocks, Nifty would have ended in Green.
14. After the distruptive tariff announcement, even Reliance fell nearly 35 rupees from intraday high due to 'Gas Migration' issue.
15. Reliance went up due to "JIO" and came down due to "OIL".
16. SGX Nifty is trading lower, around 8800.
17. Yesterday FIIs were net sellers in Cash market for Rs 301 crores.
18. But DII buying was more at Rs 308 crores.
19. After huge buying spree on Wednesday, FIIs resorted to some short selling in stock futures on Thursday.
20. That may be due to the weakness in Telecom stocks.
21. Tata Motors and TVS motors will be in focus after monthly sales figures.
22. Tata Motors has declared a good JLR sales figure also.
23. Tata Motors may move higher today.
24. It is difficult to predict the market movement today due to many reasons.
25. First, it is going to be a long week end, our markets will reopen only on Tuesday, we need to react to two days of Global cues on Tuesday.
26. Second, our markets are likely to see a considerable gap up or gap down on Tuesday due to US jobs data which will influence the world markets significantly.
27. Third, since FIIs have turned net sellers, traders may look to book profits on their long trade.
28. Fouth, as a contrary trade, some people who look to buy shares in huge quantities may use this kind of opportunity to buy shares in huge quantities without altering the prices.
29. So today afternoon trade will be interesting.
30. Since Nifty future resistance was 8750 few days before and markets have brokenout, now 8750 will become a strong support.
31. Resitance will be at 8850.