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

March 9, 2017
Time: 8.35 am

Pre Market Report:

1. US markets closed mixed.
2. Most Asian markets are down.
3. SGX Nifty fell below yesterday's low.
4. Some Media Reports suggest (i) UP - Humg Assembly with BJP and SP getting almost equal seats with BSP as King Maker. (ii) Goa - AAP, (iii) Punjab - AAP, (iv) Manipur - PRJA (v) Utterkhand - Congress.
5. If that happens, then it is really bad for markets.
6. There may be some knee jerk reaction of about 200 points in Nifty.
7. Some media reports also suggesting market peakout as in the past many times markets peaked out along with a blockbuster IPO, like RPower, Coal India, etc.
8. Crude oil fell 5% and that adds jittery to the world markets.
9. But today's trade will be very important, this fall can be a trap by the well informed bulls.
10. Public do not know the outcome of the exit poll results but few operators know the results.
11. Yesterday people have become very bullish by looking at Rs 3500 crore FII buying in Cash market.
12. But out of Rs 3500 crore, about Rs 2500 crore is by Canadian Pension Fund which bought Kotak Bank.
13. If we remove Kotak Bank trade, then there is only about Rs 1000 crore FII buying and equal amount selling by DIIs.
14. Metals falling, Crude falling, Fed rate hike looming, Global cues are not good, state election uncertainty, so our markets have reason to correct a bit.
15. As long as Nifty future is trading above 8870, things should be OK.
16. The problem will come only when that level is broken.
17. In any case, Nifty future is not likely to fall below 8700.
18. We all know what happened after Brexit and Trump last year.
19. So it is time to be cautious, trders are advised to trade with strict stop loss.
20. Markets are still in consolidation mode in the range 8850-9000.
21. I do not expect Nifty future to break this range today.