Pre Market Report, June 5, 2017 | Stocks and Commodities

June 5, 2017
Time: 8.15 am

Pre Market Report:

1. On Friday US markets shot up after US jobs data.
2. Jobs data came much lower than expected and that may delay the rate hike by US Fed.
3. But Asian markets are mixed, may be due to UK Terror attack.
4. SGX Nifty is trading around 9660, much lower than 9690 on Friday night.
5. Now the focus will shift to RBI policy on Wednesday.
6. There are two arguments, one, RBI may cut rates as Inflation is at multi year low and monsoon forecast is very good, other one is that RBI may wait as uncertainty about GST and monsoon forecast is only a forecast, not a certain event.
7. Whether RBI cut rate or not, RBI comment is expected to be Dovish and that may help banking stocks.
8. Nifty 9700 has the highest open interest among Calls and hence that will act as a good resistance.
9. At the same time, 9700 Put and 9600 Put added in open interest on Friday. That shows the downside is also limited.
10. Sun TV will be in focus again due to TN political activities.
11. Rupee is likely to strengthen and that is good for FII sentiment.
12. Markets brokeout on expiry day on May 25.
13. Since then markets are in consolidation mode.
14. Markets need a trigger to come out of this rangebound trade.
15. That may come from RBI policy.
16. So we can expect rangebound trade for next two days.
17. Today Nifty future may trade between 9620 and 9700.