Pre Market Report, November 17, 2016 | Stocks and Commodities

November 17, 2016
Time: 8.30 am

Pre Market Report:

1. US markets closed mixed with Dow down and Nasdaq up.
2. Beaten down IT stocks recovered even in US.
3. Asian markets are mostly flat with some positive bias.
4. US dollar index inched lower after hitting 13 year high.
5. US bond interest also inched lower to 2.2% from 2.3%.
6. So all these point to a consolidation, at least, now.
7. That is why emerging markets have stabilised after loosing about 8 to 10%.
8. But our markets fell yesterday drastically from intraday high due to the absence of DII buying.
9. But on a close to close basis, the fall was not much.
10. Yesterday FIIs have sold for about 1950 crores and DIIs have bought for about 2350 crores.
11. On top of this very good news, technical indicators are showing signs of technical bounce.
12. First, Nifty future has hit a double bottom, on November 9, Nifty future low was 8076, yesterday night SGX Nifty low was 8077.
13. From there, if SGX Nifty is an indication, Nifty future is likely to open about 60 to 70 points higher from yesterday's SGX Nifty low of 8077.
14. Nifty RSI has been below 30 which indicates that markets are in oversold region and hence technical bounce is possible any time, in fact even trend reversal is also possible at this point of time.
15. Having siad all these, there are some dangers also.
16. Private Sector Banks may continue to fall which may add pressure to Bank Nifty and Nifty.
17. So, if today markets close lower, then all bets are out.
18. Today is make or break day.
19. Let us see where the markets sustain after first half an hour.
20. Nifty future should take support at 8120 in order to maintain positive bias.
21. If Nifty future crosses 8180 and sustains above it, then the trend will reverse.