Pre Market Report, December 11, 2014 | Stocks and Commodities

December 11, 2014
Time: 8.50 am

Pre Market Report:

1. US markets closed lower led by energy shares.
2. Crude oil traded at 5 year low after inventory report by US.
3. Asian markets are stabilising.
4. SGX Nifty is trading about 20 points lower at 8388.
5. Despite Nifty falling by nearly 300 points in a very short time, VIX has not shot up.
6. VIX is still hovering close to 12 which is a multi year low.
7. Oil Marketing companies will be in focus as oil is trading at multi year lows.
8. IT stocks will be in focus as Rupee has breached 62 in yesterday's trade.
9. PSU Bank stocks will be in focus as Govt. allowed them to raise capital by bringing Govt. stake down to 52%.
10. Insurance related stocks like Reliance Capital will be in focus as Foreign investment limit has been raised to 49% from 26%.
11. So it will be an interesting day of trade as on one side negative global cues and institutional selling and on the other side there so many news driven stocks and sectors.
12. Nifty future premium of 51 points is very high and this shows that in the near term market bottom is somewhere near.
13. So the downside is limited and there was huge selling of 8200 put despite the fall in markets.
14. Market participants expect a trading range of 8200 to 8600 until expiry.
15. Today Nifty future should take support at 8340.
16. Resistance will be at 8420.