Pre Market Report, August 1, 2017 | Stocks and Commodities

August 1, 2017
Time: 8.45 am

Pre Market Report:

1. US markets closed mixed.
2. New month, new series starting very bullish.
3. Nifty 10000 PE has the highest open interest among Puts.
4. Asian markets are mostly higher.
5. EVen at this high level, SGX Nifty indicating a 30 point gap up opening.
6. At this highest point, DIIs were net buyers for about Rs 1800 crores which is really impressive.
7. Stocks are available at resonable price compared to 10 years before (SBI, Tata Steel, GMR Infra, JP Associate, LITL, RPower, RCom, Reliance Capital, Reliance Infra, Unitech, Bank of India, etc all trading lower than 2007 price).
8. But real estate has shot up by 10 to 100 times in this period.
9. Now smart people are disposing the real estate and bringing money to stock market.
10. If somebody bought GMR Infra in 2007, he would have paid Rs 250 per share, instead if he had invested the same Rs 250 in Real Estate, now he can sell that for Rs 10,000 (Conservative estimate) and can buy 500 shares of GMR Infra.
11. If this trend continues, market has no upper limit.
12. Many people who come to me say the same thing, "Sir I have real estate which I am trying to dispose, once sold, I will bring huge money to stock market"
13. SBI cut interest rate on Saving account and other banks may follow soon.
14. Once this news was out, Bank Nifty started moving higher.
15. Yesterday Nifty moved higher by more than 60 points yet India VIX shot by by about 7%.
16. It is very rare when Markets are up, India VIX is also up.
17. If everything goes well with RBI policy, we can expect Nifty to mover higher to 10180 - 10220 level.
18. Any small correction, Maruti is always a buy. Everytime it corrects by 100 to 200 points then shoots up to hit all time high.
19. On Friday I sold Maruti 7200 Put at Rs 35, yesterday it was below Rs 20.
20. Today Monthly Auto sales, Cement sales data will dominate Auto and Cement stocks.
21. Nifty future may trade between 10080 and 10180.
22. Here is a look at the data sheet.