Pre Market Report, September 27, 2016 | Stocks and Commodities

September 27, 2016
Time: 8.40 am

Pre Market Report:

1. US markets closed significantly lower ahead of Presidential debate.
2. All Asian markets opened lower in the morning.
3. SGX Nifty opened around 8680 and hit a low of 8676 within few seconds.
4. At 6.30, the debate started and Dow futures was trading 30 points lower.
5. As the debate progresses, Asian markets started to recover.
6. Dow futures shot up to trade 100 points higher from 30 points lower, recovering about 130 points.
7. SGX Nifty also shot up from the intraday low of 8676 to 8750.
8. But FIIs and DIIs are both net sellers in Cash market.
9. FIIs have sold heavily in futures market.
10. So any recovery will be used as an opportunity to short the market.
11. Yesterday India VIX shot up by 10%.
12. Markets are entering the turbulent period and this period will last until US election results.
13. Since we are very close to the expiry, market movement will be difficult to predict.
14. Nifty future will face resistance in the region 8780-8820.
15. On the other hand, if Nifty future breaks below 8700, there will be more selling.
16. Due to Reliance Jio's huge success ( I am not able to get a Relaince Jio sim even now), Reliance is moving higher and that is saving the market from collapsing.
17. Metals are holding.
18. First it was Yes Bank, then it was Axis Bank and yesterday it was ICICI Bank that came under huge selling pressure.
19. This month markets are highly volatile, yet traded between 8700 and 9000.
20. We need to see whether that 8700 holds for the rest of the series.
21. Nifty future may trade between 8680 and 8780.