Pre Market Report:
US markets tumbled.
Nasdaq down more than 5%.
For the last two weeks, US markets kept moving higher.
Today, very important data, Jobs data, is due.
So markets were overbought, ahead of a key data, profit booking came.
But the profit booking is so severe that Nasdaq has fallen more than 5%.
We have already seen 2 such profit booking in the last one month.
Last month, Nifty fell from 11400 to 11100 intraday.
Last Monday, Nifty fell from 11800 to 11350 intraday.
When it comes to correction or crash, we always do first.
Even in 2008, we fell in January, way before other markets.
Today's data on jobs is expected to be good but Private Sector Jobs data that came on Wednesday was not good as expected.
That could be one reason for such a huge profit booking.
Moreover, when the real economy opens up, money should move from new Economy stocks to ole Economy stocks.
Going forward, Dow is likely to do better than Nasdaq.
But Asian markets are not reacting as bad as the US.
Even Dow futures trading close to 200 points higher.
Nifty is likely to open 100 points down.
First some good things.
We have already fallen two times just like the US fell yesterday, so we may not react proportionally.
Both FIIs and DIIs were net buyers (though they bought for a very little amount, less than Rs 100 crore) in the Cash market.
DIIs kept on selling for the last two months and supported the markets when Nifty fell from 11800 to 11350 last Monday.
So at lower levels, there will be support from DIIs.
Things can stabilize in the US after today's jobs data (if it is good)
Coming to negatives.
Banking stocks look very weak, Bank Nifty yesterday broke the day before yesterday's low.
Technically that is not a good sign.
Normally when markets fall, IT stocks will support, now due to the Nasdaq fall, IT stocks may also fall.
Supreme Court postponed the hearing of the Moratorium case to Sep 10 but said that Banks should not consider accounts as NPA until further notice for all the accounts which were not NPA as of August 31.
We do not know how this news will be taken by the market.
In a normal market, this is actually good news for Banks.
Last Monday low for Bank Nifty future was 23371.
That is likely to be broken today.
But Nifty future low was 11350.50, that may not be broken.
Nifty future may trade between 11400 and 11550
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