Pre Market Report, September 9, 2016 | Stocks and Commodities

September 9, 2016
Time: 8.40 am

Pre Market Report:

1. US markets closed lower.hairman
2. European markets closed lower as expected extension of bond buying was not announced by ECB Chairman.
3. Asian markets are mostly lower.
4. There was a 5.3 magnitude earthquake in North Korea.
5. People suspect that to be a consequence of Nuclear test by North Korea.
6. That is spooking the otherwise bullish Asian markets.
7. SGX Nifty is trading around 8950.
8. Yesterday it went very close to 9000, a magical figure for the short term.
9. There are tworeasons why Nifty future could not kiss the 9000 figure.
10. First, profit warning by TCS and TCS fell dragging all the IT stocks.
11. It is interesting to see that Nifty is at 52 week high and IT index is at 52 week low.
12. Second, Yes Bank QIP flopped very badly, dragging Yes Bank more than 5%.
13. The fall in Yes Bank affected the other private sector banks and hence Bank Nifty closed flat.
14. If these TCS and Yes Bank news were not there, Nifty future would have crossed 9000 comfortably.
15. Though IT and Private Sector Banks fell, Reliance, Auto stocks and Pharma stocks contrbuted to the rally.
16. Value investors are focussing on Pharma sector now as most of these stocks are available at 40% to 50% lower than than their corresponding 52 week high whereas most other stocks are available only at 52 week high or all time high.
17. So Private Sector Banks, Autos, Pharma may lead the rally.
18. Markets may correct 3 to 4% anytime but that will be a good buying opportunity.
19. ICICI will be in focus ahead of ICICI Pru. public issue.
20. Today is Friday, markets may make some sharp moves on either side towards the end of the day.
21. Traders may square off their trades ahead of week end holidays.
22. Nifty future may take support at 8920.
23. Resistance will be at 9020.