Pre Market Report, October 26, 2016 | Stocks and Commodities

October 26, 2016
Time: 8.30 am

Pre Market Report:

1. US markets closed lower after some disappointing results.
2. After the markets close, Apple declared not so good results.
3. So US futures are further down by about 40 points.
4. Asian markets are all lower.
5. SGX Nifty is down by about 35 points.
6. Yesterday 8 out of 50 Nifty stocks declared results.
7. All results were good except Axis Bank which declared very bad results, provisiong has gone up by 5 times, profits plunged by 83%.
8. Few quaters before, Bank of Baroda declared very bad results yet shares shot up by more than 20%.
9. But that case was different, one Bank of Baroda was beaten down heavily and the Chaiman said that worst was over and there would not be any problem in the following quareter.
10. So prices shot up by short covering.
11. It is altogether a different story, Bank of Baroda declared even worst results in the following quarters.
12. So the movement in Axis bank will be interesting today.
13. I expect it to lose atleast 2% today.
14. Though we are opening lower, that is due to global cues, there may be high volatility due to expiry related issues.
15. FII selling of more than 600 crores in Cash market is also not good for bulls.
16. However DIIs continue to support the market.
17. It seems that smart people want the expiry between 8600 and 8800.
18. Just few days before one client gave me Rs 5 lakhs to deploy, I just sold Nifty 8600, 8550, 8500 Put and 8850 Call, he is already sitting with Rs 25,000 profit, a return of cool 5%.
19. He is likely to end up making more than 6% in just less than 2 weeks.
20. ITC, HUL, Hero and HDFC are the four Nifty stocks that will be declaring results today.
21. Nifty future may trade between 8640 and 8740.