Pre Market Report, July 4, 2017 | Stocks and Commodities

July 4, 2017
Time: 9 am

Pre Market Report:

1. US markets ended mixed.
2. Asian markets are also mixed.
3. SGX Nifty is trading almost flat.
4. Yesterday ITC contributed about 50 points for Nifty rally.
5. After trading between 9600 and 9700 for most part of June, Nifty broke down toeads the end of June series.
6. Then Nifty tested 9450 and started recovering, now it back above 9600.
7. So markets may continue to consolidate for some more time between 9500 and 9700.
8. After Brexit, there was knee jerk reaction, then markets went up.
9. Same thing happened after US election results and Demonetisation.
10. Markets corrected moderately before GST, many stocks corrected significantly, now after GST moving higher.
11. So it is reasonable to assume that Nifty has made short term bottom at 9450.
12. So I sold Nifty Put options at 9400, 9300, 9200, 9100 and 9000.
13. FIIs continue to sell and DIIs continue to buy.
14. DIIs may not have bought the same stocks sold by FIIs.
15. Coal India, REC, PFC, CPSE ETF are some attractive buys at current levels.
16. DIIs may be buying these stocks.
17. FIIs however net buyers in futures market.
18. Bank Nifty may be in focus as it has under performed yesterday.
19. Interesting thing to note is that Bank Nifty future was up by 125 points yesterday while Bank Nifty was up by 60 points.
20. So the premium has expanded by 65 points.
21. Even that huge premium has happend in the last 30 minutes.
22. So the shorts may be out and markets may not extend the rally.
23. Instead markets may consolidate at this level for few more days.
24. Nifty future may trade between 9580 and 9680.