Pre Market Report, August 9, 2017 | Stocks and Commodities

August 9, 2017
Time: 8.35 am

Pre Market Report:

1. US markets closed lower after trading higher in the first half of the session.
2. Trump warned North Korea and in retaliation, North Korea said it is ready to strike US island Guam.
3. That has brought Geo Political tension to the stock markets.
4. Asian markets are mostly down.
5. But Australia is up due to bright prospect of commodity prices.
6. I am mentioning this to highlight the fact that sometimes locl cues will offset negative global cues.
7. Yesterday though markets fell so drastically, FIIs were net buyers for about Rs 1550 crores and DIIs bought for about Rs 800 crores.
8. Banning the trade in about 350 companies is actually good for long term investors.
9. one, retail people will be afraid of investing in penny stocks and that money will be chanelled to quality stocks.
10. Second, these companies, SEBI suspects, converting black money into white money.
11. When this is stopped, all the black money will have to become white by paying tax and that is good for country.
12. If something is good for country, then it is good for stock market.
13. Everyone criticised Demonetisation, though people were innovative to convert all cash, now we see that 40% increase in Tax collection.
14. In simple terms, this banning of companies or North Korea issue, there will be knee jerk reaction but markets will be higher in the long term.
15. In fact this kind of mini panic is good for long term investors.
16. One can buy on every panic.
17. Pharma stocks are bleeding and again that normally happens in any bull market.
18. IT and Pharma are the sectors to avoid.
19. I will not be surprised if markets close in Green today after intial sell off.
20. Now everyone knows that both DIIs and FIIs are ready to buy at lower levels.
21. Auto stocks will be in focus ahead of Eicher and Tata Motors results.
22. Auro Pharma will also declare results but after market hours.
23. Tata Motors usually declare results just before closing bell, bringing lot of volatility in the last 15 minutes.
24. SGX Nifty is trading about 25 points lower but trading higher than yesterday's low.
25. Today Nifty fuyure may trade between 9950 and 10050.