Pre Market Report, May 8, 2017 | Stocks and Commodities

May 8, 2017
Time: 8.25 am

Pre Market Report:

1. US markets closed higher on Friday.
2. French election results came as expected.
3. But the the expected rally in world markets due to French election results is missing.
4. Asian markets are waiting for China's export-import data.
5. The data may come in the next half an hour to one hour.
6. SGX Nifty is up slightly.
7. In fact SGX Nifty closed at 9347 on Friday night, but now trading only around 9340.
8. Even European and American futures see muted activity.
9. Nifty future has been closing between 9300 and 9400 for the last 8 sessions.
10. That is the effect of Historically low VIX.
11. Today also it seems that Nifty future will trade between 9300 and 9400.
12. That is why lot of people have sold both 9300 Put and 9400 Call.
13. Outside Bank Nifty, markets look weak.
14. That may change today, if FIIs start buying as French election uncertainty is over.
15. So this week trade will be interesting one as markets can not trade within a small range for many days, it has to either breakdown or breakout.
16. Reliance Infra will be in focus as InvIT application lodged with SEBI.
17. IRB InvIT got good subscription, so Rel Infra InvIT also is likely to get good subscription.
18. There seems to be some problem with WIPRO like large scale rentrenchment, randsom, etc
19. Overall IT and Pharma are not doing well.
20. Banks are doing very well.
21. Bank Nifty is likely to trade between 22000 and 23000 and Nifty is likely to trade between 9200 and 9500for next few weeks.
22. We need to see when FIIs turn buyers from being sellers.
23. Until then it is better to be cautious, better play wiyh options than futures.
24. Nifty future is likely to take support at 9280, where it has taken support many times in the last two weeks.
25. Resistance will be at 9380, we need some trigger to break this range.
26. Triggers may be Global cues, Corporate results, FII investment trend, Good economic data, etc.