Pre Market Report, July 14, 2017 | Stocks and Commodities

July 14, 2017
Time: 8.40 am

Pre Market Report:

1. Most world markets are flat.
2. But we are in a different world.
3. P Note ban has triggered a huge short covering.
4. It seems that it will continue for some more time.
5. Yesterday also there was huge buying in Index Futures and Stock futures by FIIs.
6. That is surely short covering by P Notes.
7. SGX Nifty is trading above 9900.
8. But things may change after Infosys results.
9. Earlier Infosys used to declare results exactly at 9 am but now a days, they say 9 am but declate after 9.30 am.
10. Let us see what is going to happen today.
11. There are two things: One expectation is very low as TCS came with bad set of numbers.
12. Two, even before TCS results, people did not expect good results from Infosys, that is why Infosys is down by more than 25% while market is at all time high.
13. Moreover, few years before Infosys was an index heavy weight, used to move Nifty by 50 to 100 points on either side.
14. Now its weightage has gone down considerably, for overall markets, Infosys move has become insignificant.
15. As the short covering rally is lead by P Notes, it may continue for some more time, until the end of this month.
16. I am expecting some kind of selling towards the end of the day.
17. If Nifty future falls below 9880, then we can sell 9700 and 9600 Put options.
18. On the other hand, if Nifty trades firmly above 9920, then Nifty future will head towards 9980 - 1000 levels.
19. That may not happen today, markets may wait for some more corporate results.
20. Nifty future is expected to trade between 9860 and 9940.