Pre Market Report, June 30, 2017 | Stocks and Commodities

June 30, 2017
Time: 8.30 am

Pre Market Report:

1. US markets fell drastically yesterday.
2. Dow was down by more than 250 points at point of time, but recovered one third of the losses later in the day.
3. Asian markets are all down.
4. SGX Nifty is down by about 30 points, now trading around 9490.
5. Yesterday night, SGX Nifty hit a low of 9445.
6. For US markets, it is one day up and one day down for the last three days.
7. Moreover, there was no general weakness in equities, IT stocks kept falling and Banking stocks were up.
8. So it is a perfect bull market where sectoral rotaion takes place.
9. Even in India, when Nifty travelled from 8000 to 9500, Infy fell from 1250 to 900, Reliance rose from 1000 to 1450, Tata Steel rose from 300 to 525.
10. Even in the last 2 months, PNB came down from 185 to 135, BHEL came down from 185 to 135, which is nearly 40% correction.
11. So in a bull market, sectoral rotation takes place.
12. HDFC and ICICI will be in focus due to stock specific news.
13. I expect Nifty to trade between 9200 and 9800 in July, the same level I expected in June series.
14. But July has lot of important triggers.
15. The most attributed reason for the weakness in our markets is the difficulties in implementing GST.
16. Once implemented, running smoothly, things may change.
17. Last year, we had seen Brexit, US election results, demotetisation, etc, still markets went higher after a knee jerk reaction.
18. Same thing may happen in case of GST also.
19. Next important trigger is the good monsoon which is being ignored by the markets totally now.
20. The usual bear stocks like Anil Ambani stocks, GMR Infra, JP Associates, etc are not falling.
21. So markets may go lower and consolidate for some time and then after some time, will reocver to move higher.
22. When the world markets were moving higher, we did not move higher.
23. So there is no reason for us to move down along with global markets but opening may be down.
24. As long as Nifty future is not breaking 9470, there is a possibility of recovery in the second half.
25. Otherwise, Nifty future will go down to the level of 9380-9420.
26. Today Nifty future may trade between 9470 and 9540.
27. There may be sharp move towards the end of the day.