Pre Market Report, October 7, 2016 | Stocks and Commodities

October 7, 2016
Time: 9 am

1. US markets ened mixed, almost flat.
2. But Asian markets are down.
3. That is because, in the morning British Pound fell by 10% in flash crash.
4. Pound hit a low of 1.13 to a US dollar and now trading at 1.22, just two percent down.
5. But the severe fall of 10% intraday triggered panic button and Asian shares fell.
6. Our markets has been under performing in the last two days.
7. Just ahead of crucial US jobs data, markets will be nervous all over the world.
8. UK stock futures are up due to devaluation.
9. But we need to see how other European markets react.
10. So the fear of Pound crash and uncertanty regarding US jobs report will keep our markets jittery.
11. As a whole, markets were down though this week and hence some kind of short covering rally of 40 to 50 points Nifty is not ruled out in late afternoon.
12. Last two days, Nifty fell 90 points intraday without any reason, today we have a reason, we need to see how much Nifty will fall intraday.
13. But last two days, Nifty rose before falling.
14. Today that may not be the case.
15. FIIs were net buyers in Cash Market, Stock Index and Stock futures.
16. Still it is surprising such a fall takes place.
17. SGX Nifty is trading slightly higher at 8742 but that may not be the right reflection of ground reality.
18. So it is time to be cautious, avoid naked long positions.
19. Hedge your positions, reduce Put options if you have sold.
20. Nifty future should take support at 8680 which is a very crucial support.
21. Resistance will be at 8800-8820 level.