Pre Market Report, October 4, 2016 | Stocks and Commodities

October 4, 2016
Time: 8.35 am

Pre Market Report:

1. US markets closed marginally lower.
2. But Asian markets are mostly higher.
3. SGX Nifty is slightly lower at 8780.
4. That may be due to huge rally yesterday.
5. Yesterday morning our markets were choppy in the morning as expected.
6. Then the news came from Pak that they are talking to India to reduce the tension along the border, Nifty shot up just after this news.
7. Now we have almost recovered the entire loss due to Surgical strike last Wednesday.
8. Today RBI policy will be the key event to watch out.
9. But there is a big change, usually RBI announcement comes at 11 am.
10. Now that has been changed to 2.30 pm.
11. So markets will be volatile in the late afternoon.
12. Majority of the analysts say there will be no rate cut.
13. In that case Bank Nifty may fall by 100 to 200 points, there may not be any big reaction even if there is no rate cut.
14. Even if there is any rate cut, auto sector is likely to react more positively than Banking stocks.
15. Yesterday most Auto stocks did very well after a healthy monthly sales data.
16. Tata Motors will be in focus after a good sales figure of JLR.
17. Nifty 8600 Put has the highest open interest among Puts.
18. Nifty 9000 Call has the highest open interest among Calls.
19. So we can expect Nifty to trade between 8500 and 9100 this month.
20. Once RBI policy is over, VIX is also likely to come down.
21. After today there will be only 15 trading sessions.
22. So time value will be in favour of option sellers.
23. Nifty future is likely to trade between 8700 and 8820.