Pre Market Report, December 12, 2014 | Stocks and Commodities

December 12, 2014
Time: 8.30 am

Pre Market Report:

1. US markets rose significantly in the first half and met with selling pressure in the second half.
2. But Asian markets are firm.
3. SGX Nifty is not showing any significant rise due to huge selling of over Rs 800 crores by FIIs.
4. WTI crude broke the psychological level of US$60, now trading at US$ 59.12.
5. Brent crude is trading closer to US$63.
6. Though the fall in crude price is good for India in medium to long term, Energy sector is likely to under perform in the short term and that will limit the upside for Nifty.
7. Reliance and ONGC are index heavy weights and they are trading lower.
8. IT stocks are under performing as US dollar appreciating and therefore their earnings from other countries like Europe and Australia will be lower in dollar terms.
9. So the only sector that is supporting the markets is Banking sector.
10. If that starts weakening then Nifty will fall significantly.
11. Markets are likely to be volatile.
12. Afternoon trade will be very crucial for Nifty.
13. If any major selling, that will happen after 2 pm today.
14. If there is no major FII selling today, then Nifty future should take support at yesterday's low of 8316.
15. Resistance will be at 8400.