Pre Market Report, December 21, 2015 | Stocks and Commodities

December 21, 2015
Time: 8.25 am

Pre Market Report:

1. US markets fell drastically on Friday.
2. But Asian markets are down only marginally.
3. China and Hong Kong are actually up.
4. As I mentioned earlier, the fall in US markets on Friday was due to to "quadruple witching".
5. Brent crude is trading closer to 11 year low.
6. The GST bill hope is gone.
7. World markets are also correcting after the Fed event.
8. In the last few years, there were onlt three sectors that performed very well.
9. They are Pharma, Auto (particularly auto components) and Private sector Banks.
10. Now all three sectors are correcting and correction is a considerable one.
11. Pharma, many top companies getting US FDA warning.
12. Auto, diesel vehicles ban in Delhi is acting against them.
13. Private Sector Bank, higher provisioning fear for SDR and marginal cost of funding to decide the base lending rates etc.
14. When US hikes rates, IT sector is expected to do well, but that sector is also facing selling pressure due to doubling of H1B Visa fee.
15. So there is no positive trigger for the markets to move higher.
16. That is why there is a huge open interest in 8000 Call and that did not go down despite Nifty was moving 250 points last week in the first four days.
17. Sun Pharma will be in focus.
18. SGX Nifty is down marginally.
19. But the story after the markets open here may be different. Nifty will have to adjust to the fact that the GST bill is not possible this time.
20. However, FIIs did not sell much on Friday, they just sold for Rs 7 crore, may act as a support at the lower levels. 
21. Nifty future may trade between 7720 and 7820.