Pre Market Report, January 9, 2017 | Stocks and Commodities

January 9, 2017
Time: 8.45 am

Pre Market Report:

1. US markets closed at all time high again.
2. But the Asian markets are mixed.
3. That mainly due to the data released by China showing much lower Foreign Reserves over the week end.
4. This brings the fear of China currency devaluation.
5. SGX Nifty is trading flat at 8268 now.
6. Markets will be watching keenly the results from IndusInd Bank tomorrow.
7. That will give direction to Bank Nifty.
8. Already Yes Bank, IndusInd Bank, Kotak Bank all have moved substantially higher.
9. Though IT index fell on Friday due to H1B visa issue, Bank Nifty supported the market.
10. Nifty fell 30 points but still Put options fell. In fact the VIX did not fall substantially, yet Put option premiums fell.
11. Markets are likely to consolidate for few more days and wait for clues from IndusInd Bank, TCS, Infosys results and IIP and Inflation data.
12. FIIs are still in selling mode.
13. We need to see if there is any change in their mindset.
14. In many emerging markets, FIIs have turned as net buyers.
15. In India, they are still net sellers.
16. That may change this week.
17. Markets will move significantly higher only if FIIs turn net buyers in Cash market.
18. Auro Pharma, IndusInd Bank and IT stocks are some of the stocks that will be in focus today.
19. Nifty future is likely to take support at 8240.
20. Resistance will be at 8320.