Pre Market Report, February 16, 2017 | Stocks and Commodities

February 16, 2017
Time: 8.50 am

Pre Market Report:

1. US markets closed at another record high.
2. But Asian markets are mixed.
3. But we have been under performing other markets for the last 10 days.
4. Yesterday many people called me and told me that markets are likely to go down.
5. Their argument was based on technical factors.
6. Nifty future took support at 8732 twice in the last 10 days but that level was broken yesterday.
7. Last two intances, 8732 hit in panic but recovered within minutes but yesterday it was trading at the lower levels for a long time.
8. But I did not agree with them.
9. When I did my own analysis, I found that yesterday was an abberartion.
10. Yesterday HDFC Bank hit all time high, that has the highest weightage in Bank Nifty.
11. Bank Nifty fell due to PSU pack. Even then Bank Nifty out performed Nifty yesterday.
12. Then other index heavyweights like ITC, Reliance, TCS all ended in Green.
13. Infosys ended almost flat.
14. These 4 stock with Banks have more than 60% weightage in Nifty.
15. Only problem yesterday was ppor corporate results.
16. Both Tata Motors and Sun Pharma fell and dragged the Nifty by 30 points.
17. When there is a possibility of a bad news, there is always a possibility of a good news.
18. That has come today in the form of share buyback by TCS.
19. In fact there were rumours that Infy will come with the same idea.
20. Moreover IT stocks were beaten down heavily.
21. When Nifty rose from 6800 to 8800, Infy is trading at a level when Nifty was trading at 6800.
22. Such is the under performance of the IT sector.
23. Otherwise, both FIIs and DIIs were net buyers in Cash market.
24. Even in F&O, FIIs were net buyers in index futures and there was huge selling in stock futures.
25. Probabily this is due to short selling in Tata Motors and Sun Pharma.
26. When Nifty is up from 7900 to 8800, Nifty will have to make some violent moves to throw the weaker bulls before the nexxt rally.
27. In addition, market makers will make sure that markets trade between 8500 and 9000 in order to eat all the premiums and will let market forces only in the last few days.
28. If Infosys and TCS opens moderately higher, say 1 to 2% higher, then I will sell Put options aggressively.
29. Bak Nifty will be in focus due to Weekly expiry.
30. Nifty future may trade between 8720 and 8840.