Pre Market Report, February 6, 2017 | Stocks and Commodities

February 6, 2017
Time: 8.15 am

Pre Market Report:

1. US markets closed higher on Friday.
2. US jobs data came at 2,27,000 much better than expected on Friday.
3. That positive sentiment has spilled over to Asian markets.
4. SGX Nifty is trading at 8800, a gap up of 40 points from Friday's close.
5. Mid cap and small cap indices are very close to all time high and they are likely to make another all time high today or tomorrow.
6. FIIs have bought for Rs 353 crores in Cash market on Friday.
7. DIIs however sold for Rs 42 crores, first selling in the last many weeks.
8. There is a high expectation that RBI will cut rate by 25 basis point.
9. So Bank Nifty will continue to be in focus today.
10. On Friday Bank Nifty has out performed Nifty.
11. Within Banking sector, PSU Banks did very well on Friday.
12. That trend may continue today ahead of RBI policy.
13. This week will be very important for Bank Nifty due to RBI policy, SBI, Bank of Baroda, PNB results and Inflation data.
14. I expect Nifty to touch 9000 and Bank Nifty 20,500 by March end.
15. I have sold Bank Nifty put options from 19500 all the way to 17000.
16. Sun TV will be in focus once again as Sasikala takes over as CM of Tamil Nadu.
17. Bharat Forge will be in focus ahead of results.
18. ICICI Bank fell on Friday but was up in US.
19. Both ICICI Bank and HDFC Bank were up in US.
20. Pharma stocks will be in focus after Dr Reddy results.
21. IT stocks may under perform the broader markets.
22. There was some minor correction in Auto stocks and they may gain momentum again.
23. Auto Banks are in bull grip, IT and Pharma are in bear grip and that trend may continue.
24. Highest open interest among Puts is at 8500 and among Calls is at 9000.
25. Hence markets are expected to trade in this range.
26. Since both Nifty and Bank Nifty RSI is above 70, there may be some intraday dips but that is not neccessary.
27. Nifty future may trade between 8780 and 8850.