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

November 4, 2016
Time: 8.35 am

Pre Market Report:

1. US markets closed lower once again.
2. Yesterday US markets closed lower for 8 consecutive days.
3. Last time this has happened only in October 2008, during Lehman's crisis.
4. Here also heavy shorting is taking place.
5. Now Nifty has lost nearly 500 points from the recent high in September 2016.
6. Nifty lost nearly 200 points in the last few days.
7. FIIs are selling aggressively both in Cash and F&O market.
8. In a way, shorting is good, so that short covering rally can be expected if there is any good news.
9. Next week, Nifty is expected to touch 8300 if Trump wins and 8700 if Hillary wins.
10. The way DIIs are buying aggressively, markets may not break down so easily.
11. Retail people did not want to buy when Nifty was trading closer to 9000.
12. Many of my retail friends told me that they want a correction to enter.
13. But when the real correction comes, they are scared to invest.
14. But in my opinion, it is time for retail people to enter the market to buy at least 25%.
15. One can look at IT, Pharma, Reliance and some Banking stocks.
16. We may see some action in ICICI Bank ahead of its results on Monday.
17. Markets will be volatile, yet yesterday for the first time VIX came down a bit.
18. SGX Nifty is trading around 8490.
19. Nifty future will find resistance at yesterday's high.
20. Support will be at 8470.