Pre Market Report, February 28, 2017 | Stocks and Commodities

February 28, 2017
Time: 8.45 am

Pre Market Report:

1. US markets closed slightly higher after opening lower in the morning trade.
2. Dow made 12th straight day of record high.
3. But Asian markets are mixed.
4. SGX Nifty is also almost flat.
5. FIIs have sold in all three segments Cash, Index Futures and Stock futures.
6. However they have bought some options prbabily to hedge against the big event, 5 state elections.
7. The last day of polling is on 8th February.
8. So on the same day exit poll results will be out.
9. Markets will react and factoring in the outcome in the next two trading sessions.
10. But, if the poll outcome is just opposite to Exit polls, then on Monday, there may be a big gap up or gap down.
11. Markets have run up from 7900 to almost 9000 and now it may consolidate or correct.
12. The next leg of rally will come only if state election results are favourable.
13. Markets are likely to be volatile as there are two key events after our markets close.
14. One, our Q3 GDP data which will be out at 5.30 pm.
15. Second, Trump's sppech tonight.
16. Banking stocks losing momentum but non banking stocks are gaining momentum.
17. PSU pack in particular is weak.
18. Surprisingly Nifty 9000 Call has the highest open interest among Calls while Nifty 8500 Put has the highest open interest among Puts.
19. The trade set up was similar to February series.
20. Today Nifty future may trade between 8880 and 8980.