Pre Market Report, June 13, 2017 | Stocks and Commodities

June 13, 2017
Time: 8.15 am

Pre Market Report:

1. US markets closed lower for second day but recovered about two third of the losses made in the morning trade.
2. Asian markets are mostly higher, ignoring IT sell off in US.
3. Even in US, it is only IT stocks that fell, broader markets did not fall much.
4. Yesterday once again FIIs have shorted in Index future and Stock futures heavily.
5. Yesterday both FIIs and DIIs were net sellers in Cash market.
6. Markets all over the world are likely to be vo;atile ahead of US Fed policy meeting.
7. In India, CPI Inflation came much lower than expected.
8. Rate cut expectation will increase now in August policy meet.
9. Who knows? RBI may even go for rate cut even before next policy meet, once RBI Governor Raghuram Rajan has done that.
10. But then it was RBI Governor who took decisions, now it is MPC (Monetary Policy Committee) take decisions.
11. Inflation is at the lower end of RBI target rate of 2% to 6%.
12. Surely this is good for rate sensitive stocks like Banks and Autos.
13. Out of 24 trading sessions this series, 12 trading sessions are over, Nifty future closed between 9600 and 9700 in all these trading sessions.
14. We may continue to trade in this rage for few more days.
15. Within such a small range, markkets are likely to be volatile.
16. Today Nifty future is likely to open higher than yesterday's high, leading to losses for all those who shorted yesterday.
17. I sold Nifty 9600 Put at Rs 72, 9500 Put at Rs 46 and wanted to go short in Nifty when Nifty future breaks 9600.
18. Luckily Nifty future did not break 9600.
19. If markets are consolidating for most part of the series, then in the last few days Nifty will most likely make 250 to 300 points move on either side.
20. Stcok broking companies shares are doing very well, that shows that markets are going to be dynamic in the near future.
21. If you are long in the right stock, you make money.
22. Most of the time, markets will test your patients and will make you to exit with loss.
23. Best example is yesterday, due to many negative news which I highlighted yesterday, many people would have gone short yesterday.
24. Since yesterday was the first meaningfull gap down in the last few months, people had conviction to go short.
25. But today Nifty future is opening higher than yesterday's high, all those who keep smaller stop losses would lose money.
26. That is why hedging is always good, it is better to play with Options than Futures.
27. Lower Inflation, Good Progress of Monsoon will be positive triggers for markets.
28. Global cues are not good right now which may improve over next few days.
29. Today Nifty future may trade between 9600 and 9700.