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

January 14, 2014
Time: 8.30 am

Pre Market Report:

1. US markets moved in a wide range, after rising 282 points, fell more than 400 points.
2. In fact, since January 1, US markets are making more than 1% move every day while it was just 0.5% in the whole of 2014.
3. SGX Nifty hit a high of 8412 yesterday night.
4. But now it is trading at 8355, nearly 60 points lower than that high, but decently higher than yesterday's close of 8330 here in India.
5. Markets will focus on WPI inflation data and results from Yes Bank and LIC Housing Finance.
6. Housing Finance companies have gone up significantly in the last two months and if LIC results are not as expected, then there may be some correction in all housing finance companies.
7. Between last Monday afternoon to Tuesday afternoon, a span of less than 24 hours, Crude fell more than 10% and same thing happened between this Monday and Tuesday, crude fell another 10%. 
8. In short term crude prices likely to dictate the term to stock markets.
9. I feel that crude prices will stabilise between $40 to $45 as in US shale gas production cost is around $40.
10. But in the short term anything can happen.
11. Petrol and Diesel prices may be cut by tonight and due to this Auto sector will be in focus.
12. Asian markets have not been reacting to US markets for the past few days.
13. Today also the same.
14. But Europe will react surely in the afternoon as they are all closed at the high point of the day.
15. So our markets will open about 20 to 30 points higher, then around noon, WPI data will influence the markets and then after 1.30 pm, Europe will influence our markets.
16. So totally, once again volatile movement is expected.
17. Due to the high volatility, my prediction has been going wrong for Nifty levels for the past many days.
18. Today Nifty should take support at yesterday' low and resistance will be at SGX Nifty high of 8412.