Pre Market Report, December 2, 2014 | Stocks and Commodities

December 2, 2014
Time: 8.20 am

Pre Market Report:

1. US markets closed in Red after a long time.
2. Most Asian markets are down.
3. SGX Nifty is trading about 40 points lower at 8560.
4. Most global markets fell due to bad economic data, but the data coming from India have been good.
5. It is good that we trade lower ahead of RBI policy.
6. In case RBI policy is disappointing, the fall may not be much.
7. Gold and Crude have recovered some losses.
8. Markets are likely to open gap down 40 points and continue to trade around the same level until RBI policy.
9. Then the outcome of RBI policy will decide the action.
10. FIis were net sellers yesterday, although the figure is very small, that will act as dampener for any short covering before RBI policy.
11. My expectation is that RBI will not cut rates but will tinker with SLR, Repo, Reverse Repo etc and markets will not like it and Bank Nifty may fall.
12. But later it may recover as RBI gives dovish comments.
13. Overall, it is going to be a roller coaster ride for banks.
14. Meanwhile, since Rupee trading above 62, Pharma and IT are likely to do well.
15. Nifty future is likely to trade between 8500 and 8650, a wide range.