Pre Market Report, January 27, 2014 | Stocks and Commodities

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January 27, 2014
Time: 8.15 am

Pre Market Report:

1. Few weeks before, we reported that there was a single trade worth 5 million US dollars in Volatility option is US. The buyer will make profit only if volatility rises by more than 50% in the next few months. In the last two days alone VIX rose by more than 40% in US.
2. We also reported yesterday that Nifty is likely to open gap down by 100 points.
3. Now SGX Nifty is trading more than 100 points down.
4. We have been reporting that FII buying is not consistent and the total figure is not encouraging.
5. Rupee is likely to breach 63.
6. On Friday German markets started in positive territory then fell about 300 points.
7. US futures were positive on Friday morning but ended up loosing more than 300 points when the trade closed there.
8. Emergimg markets currency rout, RBI policy, Fed meeting all will make trading highly volatile here.
9. Also Nifty took support at 6150 for the entire month, if that is broken then panic will set in.
10. For today, Nifty should take support at 6150 and resistance at 6220. (Today's SGX Nifty low was 6147)