Pre Market Report, December 18, 2015 | Stocks and Commodities

December 18, 2015
Time: 8.30 am

Pre Market Report:

1. US Fed event has created expected effect in the markets.
2. Markets went up and India VIX crashed.
3. The crash in India VIX is more than expected, usually it crashes by 10% to 12% post this kind of events.
4. But yesterday's rie was mainly due to short covering.
5. Whether the rally will continue or not?
6. At best markets may consolidate between 7700 and 7900.
7. The rally can continue only if GST bill is passed.
8. Whether GST bill will be passed by Dec 23 or not?
9. It is a billion dllar question.
10. Some people say it will not be passed as Congress is determined to block the parliament functioning.
11. Some people say, Congress is isolated, except Congress all other parties support GST, so at least on the last day of the session, GST bill will be passed.
12. After the knee jerk reaction for Fed event by short covering, now reality bites.
13. Many currencies are falling, Gold, Silver, Crude all started falling.
14. SGX Nifty is trading about 50 points lower, which is 50% retracement of yesterday's rise.
15. Many export companies will be in focus as their exporting countries currencies are falling.
16. Maruti will be in focus as they won the majority vote of the minority shareholders.
17. We have to see how Banks react to Marginal cost of funding method to decide the lending rates.
18. Axis bank fell even in yesterday's trade though it was trading very close to 52 week low.
19. FIIs have bought for Rs 638 crores in cash market which is a positive sign.
20. Nifty future should take support at 7780 and resistance will be at 7880.