Pre Market Report, March 6, 2018 | Stocks and Commodities

March 6, 2018
Time: 8.50 am

Pre Market Report:

1. US markets are up.
2. Asian markets are also up.
3. But China is down and that reduced the optimism.
4. SGX Nifty is trading around 10390 after hitting 10428.
5. Yesterday high was 10395, so the bullish momentum will set in only if Nifty future trades above this level.
6. At the same time, due to huge short positions, Nifty will find support at lower levels.
7. Yesterday I mentioned the support for Nifty future was 10320.
8. Nifty future exactly reversed from from there.
9. I will take a bullish bet only if Nifty future trades above 10420.
10. We have lot more data due in the next two weeks and hence it is not going to be one way move for Nifty.
11. There will always be ups and downs.
12. Yet I expect Nifty to trade in the range of 10300 - 10700.
13. FII selling is slowing down. Hence markets may stabilise.
14. US jobs data this Friday and Inflation data, US Fed policy meet are some key events that will decide the direction.
15. Yesterday Bank Nifty out performed Nifty.
16. Yesterday, I observed a meaningful selling in index heavyweights like Reliance, Infy, Maruti, etc.
17. Reliance was holding during this fall from 11200 to 10300, but yesterday came under severe selling.
18. I felt like Mini Capitulation phase.
19. Usually markets bottom out after this kind of selling.
20. Nifty future may rally due to short covering in the second half, if everything goes well.
21. So any intraday fall should be used as buying opportunity for intraday.
22. Nifty future may trade between 10350 and 10450.