Pre Market Report, September 6, 2016 | Stocks and Commodities

September 6, 2016
Time: 8.20 am

Pre Market Report:

1. US jobs data came at 1,51,000 on Friday slightly lower than expected figure of about 1,80,000.
2. So the chances of September rate hike has gone down.
3. Hence markets went up in US.
4. On Monday Asian markets followed.
5. But on Monday both our markt and US market were closed for holidays.
6. Today also most Asian markets are trading slightly higher and all markets are holding.
7. SGX Nifty hit a high of 8930 yesterday.
8. Now it is trading around 8910.
9. Nifty future may find resistance around 8920.
10. If Nifty future trades firmly above 8920, then it is  matter of time Nifty future will test 9000.
11. Non stop run up in Nifty of more than 2000 points form February low and FCNR redemption of about 30 billion dollars in September make risk reward ratio not in favour of bulls right now.
12. Bank Nifty future hit a high of 19999.95 on Friday, today it will cross 20000.
13. It was around 13500 on February 29.
14. Nearly 50% rise in 6 months, agreat bull run for banking stocks.
15. Auto stocks may lead the next bull run.
16. Nifty RSI is around 70 and Bank Nifty RSI is above 70.
17. This makes technical people to be bearish but markets keep moving higher by triggering these technical traders' stop losses.
18. India Services PMI came higher, close to 55 is a positive news.
19. Nifty future may consolidate in the range 8880-8920 for sometime.
20. Markets may correct only after hitting 9000 or all time high.
21. So selling Put option and squaring up once Nifty crosses 9000 may be a good strategy now.