Pre Market Report, March 12, 2018 | Stocks and Commodities

March 12, 2018
Time: 8.55 am

Pre Market Report:

1. US jobs data came in a perfect way for bulls.
2. Economy added more than 3 lakh jobs without corresponding increase in wage.
3. Immediately, bears went for cover, Dow shot up more than 400 points.
4. On Friday afternoon, Nifty shot up by 50 points and then crashed by 100 points, all within few minutes.
5. So now SGX Nifty is trading much higher than Friday's high of 10300.
6. So first half an hour, there will be panic square off by short sellers.
7. Markets may settle down after 30 minutes.
8. Surprisingly FIIs were net buyers on Friday.
9. It is the DIIs who are selling in order to give large dividend to reduce the impact the LTCG.
10. Some funds have declared more than 25% dividend which is unheard of in MF Industry.
11. Today the biggest event is over and hence India VIX is likely to crash.
12. Option premiums may also fall as VIX falls.
13. Moreover, there are only 13 more trading sessions for the expiry, including today.
14. There is every possibility, markets may turnaround and may head towards 10600.
15. SGX Nifty is showing around 130 points higher which means Bank Nifty is likely to open about 400 points higher.
16. Since huge shorts are there is Banking stocks, short covering will be more in Bank Nifty.
17. If the Nifty breaks first half an hour high, it is better to go long.
18. But the rally may not be powerful due to huge gap up.
19. Also IIP data and Inflation data are due today evening.
20. There will be some jitterness ahead of these data.
21. Nifty future may trade between 10300 and 10400.