December 12, 2015
Time: 8.40 am
Pre Market Report:
Time: 8.40 am
Pre Market Report:
- US markets fell once again.
- Asian markets are down marginally.
- SGX Nifty is trading around 7660.
- Our markets have fallen for 6 consecutive days already.
- I had mentioned that GST will make Nifty to move about 300 points either way.
- No market feels that the chances of GST bill passing is very very low.
- Sonia and Rahul Gandhi court visit is on 19 December, so until then Congress is not likely to cooperate in parliament.
- With Global cues turning very bad, Nifty has lost more than 300 points in the last few days.
- Still one more week to go for Fed hike and we closed just 10 to 15 points higher than the 52 week closing low.
- So if everything goes as per bearish expectation, December will test the 52 week low.
- If any short covering comes just before or just after or if by any chance GST bill is passed, that short covering will also be sold into.
- Now according to some technical analysts, 7900 will be a strong resistance.
- But one surprising thing is that despite such a sharp fall of more than 300 points in less than a week, bad global cues, bad political developments, etc, India VIX did not shoot up.
- Hence the downside from here also seems to be limited as of now.
- But VIX may shoot up once Nifty starts trading below 7600.
- 2015 is going to be the worst year as none of the asset classes did well. Stock markets gave negative return, Gold has given negative return, Real Estate has given negative return, FDs gave less return compared to last year, Crude, Steel, Copper, Aluminium all gave negative returns.
- Nifty future should take support at 7580.
- Resistance will be at 7680.
- We have to see how how markets move in the afternoon.
- FIIs have sold for more than 500 crores in Cash market but DIIs have bought for close to Rs 900 crores.
- This time midcaps are doing badly as 320 out of BSE 500 stocks trading below 200 Day Moving Average.
- Be ready for a volatile day.
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