Pre Market Report, August 21, 2017 | Stocks and Commodities

August 21, 2017
Time: 8.30 am

Pre Market Report:

1. Asian markets are mixed.
2. China, Hong Kong are up and that is good for Indian markets.
3. Yesterday North Korea once again threatened US.
4. But this is an annual affair. US and South Korea conduct joint excercise every year for 10 days.
5. That excercise begins today, usually North Korea make this kind of comments befor US-South Korea joint excercise.
6. So Asian markets chose to ignore this comment.
7. But US markets were down on Friday, so Asian markets are not showing any sugns of recovery.
8. Some markets are up due to local factors.
9. SGX Nifty is slightly higher, trading around 9860.
10. So markets are likely to consolidate for few days.
11. Infosys buy back at Rs 1150 per share and US law firms' class action suite will influence the Infy stock and in turn that will affect overall market.
12. Arun Jaitley's comment about insovency is likely to be positive for banking stcks, particulary PSU pack.
13. US and European futures are also flat.
14. We have 8 more trading sessions in this series, so premiums may start falling in both Call and Put options.
15. RBI has identified 40 companies for NPA resolution which forms about 60 to 65% of bad loans.
16. That is a good progress on bad loans and good for PSU Banks.
17. Though markets fell dratically on Friday, more than 100 points intraday, FIIs were net buyers in both Index futures and Stock futures.
18. This trade set up is positive for short term, though FIIs were net sellers in Cash market.
19. They should have sold Infosys for huge amount due to structural change in Infosys.
20. Nifty future may trade between 9800 and 9900.