Pre Market Report, July 15, 2019 | Stocks and Commodities

July 15, 2019
Time: 8.20 am

Pre Market Report:

1. US markets closed higher on Friday.
2. But Asian markets opened negative in the morning.
3. Asian markets were jittery due to China GDP data.
4. China GDP data came at 7.30 am, at 6.2, which was in line with expectation.
5. Industrial production data, retail sales data from China came better than expected.
6. Many Asian markets recovering their losses.
7. SHX Nifty also up by 40 points from morning low.
8. Now SGX Nifty trading around 11580.
9. Infosys results came after Friday's market close.
10. Infosys ADR up by 6% in US.
11. Since it was up by 1% on Friday, it may open about 5% higher today, if ADR is an indication.
12. Infosys has 6% weightage in Nifty, so a 5% move in Infosys will contribute about 40 to 50 points in Nifty.
13. Over the weekend, IIP and Inflation data came in line with expectation.
14. Low Inflation and low IIP figure increases the expectation for another rate cut by RBI.
15. IndusInd Bank came with good results on Friday.
16. So Infosys and IndusInd Bank are the two stocks to watch today.
17. DHFL came with quarterly results 3 months late.
18. The results were not audited.
19. DHFL said it may be difficult to continue as a company.
20. That stock may come under severe selling pressure.
21. That may affect other Housing Finance and NBFC stocks.
22. Meanwhile FIIs seems to have bought more call options expecting some bounce in markets.
23. They are not heavily short in futures also.
24. DIIs keep buying more than what FIIs are selling in Cash market.
25. On Friday last hour selling came mainly from Reliance that brought Nifty down by more than 100 points from intraday high.
26. India VIX now below 12. That is a very low figure.
27. Market falling with low VIX is not really good.
28. In case if Nifty future falls below 11480, the selling will be severe.
29. So it time to be cautious.
30. However this weekend, Reliance and HDFC Bank are set to declare results.
31. Until then markets may be choppy but rangebound.
32. Nifty future may trade between 11520 and 11640.