Pre Market Report, July 3, 2018 | Stocks and Commodities

July 3, 2018
Time: 8.55 am

Pre Market Report:

1. US markets opened lower following Asian markets but recovered all the losses and closed positive.
2. Manufacturing data was good in US and that was one of the reasons for recovery.
3. Yet we have to be careful, until at least on Friday when the tariff hike comes into effect.
4. Today Asian markets opened higher in the early morning.
5. But when China opened, Chinese Yuan depreciated, quoted at 6.7 per dollar.
6. That dented the sentiment and most Asian markets gave up the early morning gains.
7. Hang Seng fell about 950 points at the lowest level.
8. SGX Nifty also fell about 50 points from intraday high.
9. Govt announced a 5 point plan for Bank NPA.
10. But that may scare the weaker bears in PSU Banks. Nothing more will happen.
11. Market set up looks weak though there was a good recovery in the later part of the session yesterday.
12. So it is time to be cautious on the long side.
13. Due to the full margin requirement, we may not have enough money for fire fighting.
14. The range as I stated earlier is 10200 to 11000 for this month.
15. Among the emerging markets, we are still doing OK at the index level.
16. Sell or rise will be the strategy now.
17. For the last two months Bank Nifty was trading between 26000 and 27000, (except on May 31, when it briefly crossed 27000 due to HDFC Bank news).
18. Yesterday Bank Nifty broke last month's swing low.
19. If Bank Nifty breaks 26000, then the next support will be at 25500.
20. Nifty should take support at 10400 this month.
21. All this assuming there will be no more big problem on trade war front.
22. Today Nifty future may trade between yesterday's range.