Pre Market Report, December 15, 2015 | Stocks and Commodities

December 15, 2015
Time: 8.25 am

Pre Market Report:

1. US markets closed higher a a very volatile session.
2. Asian markets are mixed.
3. SGX Nifty is trading lower around 7650.
4. The fall in the last few days was due to lower crude prices, GST bill issue, diesel vehicles ban in Delhi etc not because of US Fed.
5. Fed rate hike is not an uncertain event, it is a certain event.
6. That is why India VIX is still well below 18, usually whenever there is big events like this India VIX will be above 20.
7. Fed will hike rate by 25 basis points and will give dovish comments. (Economy is on the right path, future rate hike will depend on the economic data etc)
8. Yesterday though markets were up, Bank Nifty was almost flat.
9. Axis Bank and ICICI Bank two leading private sector banks hit 52 week low.
10. Even at 52 week low, Axis Bank saw a delivery based selling of 250 crores which is very bad for this stock.
11. Highest open interest among Puts is at 7500 and among Calls is at 8000.
12. There is a general feeling among market participants that markets will rally after the Fed event.
13. FIIs have accumulated short positions in Nifty for Rs 6000 crores and that increases the expectation of short covering rally.
14. Even if there is any rally, it will be sold into.
15. Nifty is not likely to cross 8000 in December series.
16. Those who are long, better buy some Put options, it will protect you in case if there is any crash.
17. If you feel that Put option premiums are high, then you may part fund it by selling a Call option.
18. Nifty is expected to take support at 7600.
19. Resistance will be at 7700.
20. Markets will be trading with negative bias in the morning, then Europe is expected to trade in Green in the afternoon and there may be some sharp move on either side depending on institutional activity.