Pre Market Report, May 14, 2014 | Stocks and Commodities

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May 14, 2014
Time: 8.15 am

Pre Market Report:

1. Another day of record closing for both US and Europe markets.
2. SGX Nifty is trading at 7165.
3. Huge buying by FIIs in the cash market is likely to keep the market trend up.
4. Also the way VIX has crashed makes it clear that markets strongly believe that NDA victory is certain.
5. To be more sure, BJP is in touch with Patnaik and Jayalaitha.
6. So even if Exit polls go wrong and BJP gets less than what is projected, still NDA will form the government with the help of these two.
7. Once Jayalaitha brought down BJP Goverment, that is because at that point of time she was the opposition leader in Tamil Nadu, so she wanted BJP to throw the state government.
8. Now she is ruling the state and there will be no such compulsions this time.
9. So whicever way you look, NDA is set to form the government.
10. When there is uncertainty, VIX shoots up.
11. When there is clarity (No uncertainty), VIX cools down.
12. Yesterdy VIX cooled down.
13. At one point, it fell more than 20%.
14. After a day or two of consolidation, Banks are likely to go up.
15. Despite bad results by PNB, PSU Banks out performed Private Sector Banks yesterday.
16. So PSU Banks likely to lead the Bank Nifty.
17. Markets will be volatile with positive bias for next two days.