Pre Market Report, May 23, 2017 | Stocks and Commodities

May 23, 2017
Time: 8.25 am

Pre Market Report:

1. US markets closed higher for three days in a row.
2. It seems that everyone has forgotten about Trump issue.
3. This is the bull market, keeps moving higher slowly and make some sharp fall whenever there is a bad news and then again keeps moving higher slowly.
4. Our market was also the same.
5. Nifty was trading between 9300 and 9400 for many days in this series.
6. Then broke out and traded only for two to three days between 9400 and 9500.
7. Then crossed swifty 9500 to trade between 9500 and 9600.
8. Then came the Trump news, Nifty fell towards 9400.
9. The support at 9400 was not breached.
10. Now consolidating between 9400 and 9500.
11. Due to sharp correction, more shorts will be there in the system.
12. There may be some short covering rally, tomorrow or day after tomorrow.
13. Option sellers will make sure that premiums collapse before any short covering sets in.
14. Yesterday DIIs have bought aggressively.
15. DII behaviour is very strong in favour of bulls which I have not seen is the last 10 years.
16. So markets may only see a shallow correction as DIIs are ready to pump in huge amount of money on every correction.
17. Though Nifty fell less than 200 points from the peak, many stocks have corrected significantly.
18. Stocks like BHEL. PNB corrected more than 20% in last few weeks.
19. SGX Nifty is trading around 9475.
20. Today Nifty future may trade between 9440 and 9520.