August 22, 2017
Time: 8.25 am
Pre Market Report:
Time: 8.25 am
Pre Market Report:
- US markets closed mixed but recovered from morning losses.
- Asian markets are mostly higher.
- SGX Nifty hit a high of 9819 and now trading between 9805 and 9810.
- That is a pleasant surprise as Nifty has opened gap down many times in the last two weeks but never opened gap up.
- If Nifty future opens around 9810 then it is a decent gap up of 45 points over its close of 9765 yesterday.
- Yesterday's fall was still puzzling for many people.
- There was no bad newsflow, yet Bank Nifty fell by 330 points from intraday high.
- Nifty fell about 120 points from intraday high.
- Global cues were not bad, locally also there was no bad news.
- So in my opinion, yesterday's fall was an abberration which may be corrected today.
- If Nifty future sustains above 9820, then there may be further shortcovering.
- Despite Nifty breaking 9800 and even hit a low of 9740, yet highest open interest among Puts has remained at 9800.
- So I strongly believe yesterday's move was due to some panic or some margin call.
- FIIs were net sellers in Cash market and that was due to heavy selling in Infosys.
- Whenever there is a structural change, FIIs will dump the shares, no matter what is the loss.
- FIIs were net buyers in both Index futures and Stock Futures.
- Things are iproving all over the world, US-North Korea issue is also being sidelined.
- Things should improve from here for our markets also.
- At the same time, there may not be any runaway rally.
- Markets may consolidate between 9700 and 9920 for next few days.
- If things really improve in the next few days, then we can expect some big upmove next week.
- Remember in the past Nifty has made 200 to 250 points move on either isde during the last week.
- Since this time Nifty has already fallen so much, if there is any big move, then it will be on the higher side.
- Today Nifty future may trade between 9780 and 9860.
- Some big move may happen in the afternoon.
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