Pre Market Report, December 31, 2013 | Stocks and Commodities

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December 31, 2013
Time: 8.15 am

Pre Market Report:

1. US markets were flat.
2. Most Asian markets are also trading flat with positive bias.
3. SGX Nifty is trading about 30 points higher.
4. Today's trade may be volatile due to low volume.
5. Some DIIs may buy towards the end to shore up their NAV.
6. Global cues will also be missing as many Asian markets would close early and in Europe most markets are closed.
7. Gold is trading below US$1200 per ounce.
8. Crude price is a worry for India which is firmly trading above US$110.
9. Today's support will be at 6320.
10. Today's resistance will be at 6380.
11. In case of short covering, DII buying to shore up NAV and if FII also buy, then Nifty may cross 6400. Even if that happens, it will happen only after 2.30 pm.
12. So be careful about today's closing trade. 

Recommendation:

1. Buy BHEL futures. There is a huge difference between cash price and futures price. Either cash price will have to come down or futures price will have to go up. But in cash it looks very strong, climbing new high even in very weak market. So if market sentiment is good, then there will be short covering one day, a gain of Rs 5 ( Rs 10000 per lot) can be expected only from this short covering. If you are comfortable holding after the short covering rise, then sell 190 Call option. Otherwise exit future position.