Pre Market Report, October 24, 2016 | Stocks and Commodities

October 24, 2016
Time: 8.15 am

Pre Market Report:

1. On Friday, though markets opened lower, recovered most of the losses and closed marginally lower.
2. Asian markets are mixed, some positive and some negative.
3. SGX Nifty is marginally higher at 8720 now.
4. There are some good news over the weekend.
5. First, Rs 3000 crore penalty to Airtel and other telecom operators for not connecting Jio calls.
6. This will be a big positive for Reliance.
7. Since Reliance has fallen just after the results, there may be short covering in reliance today.
8. Second, Essar money of 2.5 billion US dollars is going to Axis Bank, ICICI Bank and Standard Chartered Bank. though most of the money is going to SC Bank, we can see some action in Axis and ICICI Bank.
9. On top of this news, Axis Bank is coming out with results today (but as per NSE it is tomorrow).
10. So Bank Nifty will also be in focus today.
11. Third, though not very important, Govt. of India is likely to reduce the gold import duty from 10% to 8% - 6% level in ordert o curb the smuggling.
12. So Gold prices may fall and that may benefit gold related stocks and since the return is going down in Gold, people may prefer stocks over gold as investment and that is good for medium to long term.
13. FIIs are selling only little in Cash market and DIIs are buying in huge quatities.
14. Tomorrow PNB Housing Finance issue is opening, the second largest this year.
15. The largest issue ICICI Pru has not rewarded the investors.
16. But PNB valuation is very low but the only problem is that people are not bullish about its parent PNB.
17. That is the main reason to price the issue at reasonable valuation.
18. It is a long term story, short term there may not be any big listing gains.
19. One may apple in small quantities.
20. Nifty future may consolidate between 8600 and 8800 until expiry.
21. Today it may trade between 8660 and 8740.