Pre Market Report, November 21, 2016 | Stocks and Commodities

November 21, 2016
Time: 8.35 am

Pre Market Report:

1. US markets closed lower on Friday.
2. But Asian markets are mixed.
3. Japan, Hong Kong, China, Taiwan are up marginally.
4. Other markets like Australia, Singapore, South Korea are down marginally.
5. Reflecting this trend, SGX Nifty is trading between 8080 and 8090.
6. Dollar index up, bond yeilds are higher in US.
7. But European and US futures are all slightly higher.
8. Our markets are likely to open slightly higher.
9. PM has said that interest rates will come down.
10. We have to see how markets react to this news.
11. SBI plans to raise about 5700 crores by issuing preferential shares to Govt, plans to raise another 15,000 crore by way of public/rights/ADR issues.
12. So SBI will also be in focus.
13. ITC container was looted in Andra and that may affect ITC shares.
14. Markets are heavily over sold and technical bounce may come anytime.
15. FII selling in Cash market is balanced by DII buying in Cash.
16. FIIs are not selling in F&O.
17. With RSI much below 30, short covering rally may come anytime.
18. At the same time, earlier many times when markets came under pressure, Nifty expired at the lowest point of the series.
19. So Nifty breaking below psychological level of 8000 is always open.
20. And short covering rally is also open, taking Nifty to 8200-8300 level.
21. Markets are likely to be volatile within a range.
22. India VIX may come down.
23. There was no significant build up in options and hence markets may not move violently.
24. Be ready for expiry week volatility.
25. It is better to be away from the markets until the end of expiry.