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

October 6, 2016
Time: 8.40 am

Pre Market Report:

1. Markets all over the world are directionless.
2. One day up and one day down kind of movements.
3. Many markets are behaving differently.
4. Yesterday we started very well but profit booking brought the markets down.
5. Yesterday I expected a surprise upside movement but that did not materialise.
6. The main reason is that there was a news in the afternoon that ECB is winding down its debt buying program.
7. That was the main reason for the weakness after 2 pm.
8. But later ECB officials have denied that there was any such proposal.
9. Then yesterday evening, US markets recovered after jobs data and PMI data.
10. Today mornong most Asian markets are positive.
11. SGX Nifty is trading around 8790 after hitting a high of 8810.
12. Nifty future will face resistance at 8820, once it is crossed with good volume we can expect 8880.
13. But Bank Nifty is looking very bearish, particularly Axis Bank.
14. May be, some insiders know the timing of Govt. stake sale in Axis Bank.
15. Bank Nifty will be more volatile today due to Weekly expiry of Bank Nifty.
16. There are not many stock specific news.
17. Crude prices are firm and that is a positive for world markets.
18. Though Nifty is looking weak, midcap index is hitting all time high again and again.
19. If that continue, then the downside for Nifty will be limited.
20. At some point Nifty will catch up and move higher.
21. Nifty future is likely to find support at 8750 and resistance at 8840 in today's trade.