Pre Market Report, September 30, 2016 | Stocks and Commodities

September 30, 2016
Time: 9.00 am

1. One day Crude up by 6% so world markets go up.
2. Next day, Duetsch Bank news come and world markets are down.
3. Yesterday in US also VIX shot up by more than 14%.
4. So it is not only our markets, all markets are volatile.
5. Our market volatility is much more because of military operationin PoK.
6. I did mention few days before that markets are likely to expire at the low point of the series.
7. That has exactly happened.
8. As expected, Pakistan has not retaliated immediately.
9. So our markets should stabilise.
10. But to it may continue to fall due to global cues.
11. Yesterday FIIs have bought for about 3400 crores in Cash market and DIIs have bought for Rs 1630 crores.
12. Even in F&O, FIIs bought Rs 875 crores worth of future but sold only Rs 137 crores in stock futures.
13. Yest markets can fall like this.
14. Yesterday turnover was highest in Indian stock market history, about 45000 crores in Cash market and about 11 Lakh crore in F&O market.
15. SGX Nifty is about 50 points lower.
16. Nifty should not break 8545 for three resons.
17. One, that level was yesterday's low.
18. Second, that was the lowest level in August series.
19. Third, 1000 DMA is positioned there.
20. We have taken support at 100 DMA in the past 6 out of 7 times.
21. But one time when markets fell below 100 DMA, Nifty fell another 500 points before recovering.
22. Uri attack happened many day's before but we did not react immediately.
23. The same way Pakistan may not react immediately.
24. So the fear of retaliatary attack will be there for many more days and hence people will not be willing to go long.
25. So markets are not likely to recover in the short term.
26. Let us see how markets move today. If Nifty spot moves below 8545, then Nifty may fall another 150 points.