Pre Market Report, June 21, 2017 | Stocks and Commodities

June 21, 2017
Time: 8.35 am

Pre Market Report:

1. US markets closed lower after two days of rise.
2. Crude oil fell more than 2% and went into bear territory.
3. This year Crude fell more than 20% and when an asset falls more than 20% then it is in Bear territory.
4. That is giving negative sentiment for world markets.
5. Asian markets are all down except China.
6. China A shares are included in MSCI Emerging Index and that is a big positive for China shares.
7. Though the inclusion is very small, it is sentimentally positive.
8. Over a period of many years, when China shares are included fully, China will command 40% of MSCI Emerging Index.
9. That is very big compared to about 9% for India.
10. So over a period of time, FIIs will have to sell Indian shares and have to buy China shares.
11. But the way local money is coming to stock markets, that will not be a big problem.
12. SGX Nifty is trading around 9645 about 30 points lower.
13. Out of 24 trading sessions this series, 18 trading sessions are over, Nifty future closed between 9590 and 9690 in all these trading sessions.
14. The way markets are going to happen, it looks like the same story today for the 19th day.
15. This Friday if Nifty future close around 9700 then there may be breakout next week and Nifty may head towards 9880 level.
16. On the other hand if Nifty future close around 9600 then there may be breakdown next week and Nifty may head towards 9420.
17. Any way, there is an exiting week ahead next week.
18. Stock specific action continue in broader markets.
19. Bank Nifty future is up 700 points in this series though Nifty has not gone anywhere.
20. GST implementation is the reason why FIIs keep selling, they may start buying once GST issue is settled by first week or second week of July.
21. Monsoon news has been very good, yesterday IMD said the overall rain is 5% above normal.
22. Even Tamil Nadu has not seen the kind of rains that it is receiving now.
23. That is a huge positive for India. In fact falling Crude prices also a big positive for India.
24. Markets may open lower but may stabilise, may not continue to fall.
25. This month only Option sellers are making money.
26. Next week they may lose heavily, if not carefully keep stop losses.
27. Last month also markets were mostly range bound but broke out on the last trading day.
28. Today Nifty future may trade between 9600 and 9700.