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

January 6, 2016
Time: 8.55 am

Pre Market Report:

1. US markets ended mixed with Dow and S&P 500 down and Nasdaq up.
2. Asian market are mostly trading with positive bias.
3. SGX Nifty hit a high of 8318 and now trading around 8310.
4. Yesterday, for the first time in the last many days, markets were firm withouut much intraday volatility.
5. People guessed that it is due to absence of FII selling.
6. The guess was right, FIIs have sold only for Rs 87 crores.
7. But DIIs have bought for Rs 449 crores in Cash market.
8. FIIs were net buyers in Index futures and Stock futures also.
9. Since HDFC Bank cut interest rtaes, it was down in yesterdae y's trade.
10. That was the reason for less performance by Bank Nifty.
11. If HDFC Bank starts moving higher, then we can expect Bank Nifty to move higher.
12. On November 11, Nifty closed around 8296, yesterday Nifty closed at 8273, just 23 points down.
13. But on November 11, Bank Nifty closed at 19740, yesterday it closed at 18100, nearly 1800 points down.
14. So there is a huge under performance by Bank Nifty in the last few weeks.
15. So Bank Nifty has to recover if markets are to move significantly higher.
16. At least Nifty broke out yesterday from the small trading range.
17. Now if FIIs turn net buyers, if global cues also continue to support, then markets may move significantly higher.
18. Most world markets are trading at one and half year high but we are far from even 52 week high.
19. So there is a possibility of a huge bull run.
20. I am planning to sell more Put options, starting from 7800.
21. One can sell Put options in Nifty at 7800 and below and Bank Nifty 17000 and below.
22. Since Nifty has shot up by 400 points in the last 10 days, markets may see a profit booking anytime.
23. Also next week markets will be volatile due to corporate results.
24. IndusInd Bank will declare results on 10th, followed by TCS on 12th and Infosys on 13th.
25. IndusInd results may be a trigger for Bank Nifty rally next week.
26. Nifty future will face resistance at 8330, if that is crossed, then next resistance will be 8380.
27. Support will be at 8260.