Pre Market Report, June 27, 2017 | Stocks and Commodities

June 27, 2017
Time: 8.15 am

Pre Market Report:

1. US markets ended mixed yesterday.
2. Asian markets are mostly in Green.
3. SGX Nifty hit a high of 9635, but now trading around 9620.
4. June series this time is unusual.
5. First, in most of the trading sessions, Nifty opened higher but could not sustain at higher levels.
6. Second, in most of the trading sessions, Nifty future closed between 9600 and 9700, this is such a long consolidation and yet no symtom of breakout or breakdown.
7. Third, last Thursday Nifty future hit series high and the next day it hit series low.
8. Many stocks corrected significantly in June though Nifty not corrected much and at the same time many stocks have shot up.
9. Reliance from Rs 1300 to Rs 1450, Reliance Capital from 540 to 650, Auro Pharma from Rs 500 to Rs 675, etc are some examples.
10. This is the first time, as far as I remember, markets are weak while Anil Ambani stocks are looking good. Usually Anil Ambani stocks will be the first one to correct.
11. There is a good progress of monsoon and it is completely ignored by the market.
12. Historically Nifty was up atleat by 8% between June low and July high.
13. If History repeats, Nifty should cross 10200 in July.
14. So any breakout, it is time to go long.
15. Nifty 9700 Call has the highest open interest among Calls and that needs to be taken out for rally.
16. Since markets have consolidated for four weeks, we can expect some action this week.
17. Markets tend to make big moves in the last three days.
18. Financial year may be changed from April-March to Jan-Dec.
19. In that case Budget may come at the end of November.
20. June, July monsoon, September, October Festival sales, November Budget, will make June to December to be action packed period for stock markets.
21. Coal India is trading at a price that gives 12% dividend return.
22. Nifty future may open around 9620 and will face resistance at 9680 and may take support at 9580.