Pre Market Report, December 16, 2013 | Stocks and Commodities

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December 16, 2013
Time: 8.15 am

Pre Market Report:

1. Most Asian markets are down.
2. They are trading at 3 months low and have been falling for fourth day.
3. SGX Nifty is trading at 6188, about 20 points lower than our close here on Friday.
4. If it opens lower, then our markets will be falling for 5 consecutive days.
5. This kind of moves will make retail investors to stay away from the markets.
6. Also FIIs have sold for 500 crores in cash market for the first time after a long time.
7. FII selling, RBI policy, FOMC meeting will make sure that our markets fall further.
8. Though Asian markets are falling, the fall is limited as Europe and US futures are trading slightly higher.
9. Chinese manufacturing PMI came at 50.5 which is lower than the expected figure of 50.8.
10. Crude oil is trading slightly higher due to Libya problem.
11. Gold is trading flat waiting for cues from the Fed.
12. Rupee is likely to be flat today.
13. Nifty future will face resistance at 6220 today and support is at 6160.

Recommendation:

1. Sell Nifty 5900 Put option and 6400 Call option. 
2. After today, there are only 7 more trading sessions.
3. Once Fed meeting is over, premiums will collapse.
4. Those who want to take higher risk can consider selling Bank Nifty 10500 Put option and 12500 Call option.