Pre Market Report, December 23, 2015 | Stocks and Commodities

December 23, 2015
Time: 7.45 am

Pre Market Report:

1. Day before yesterday US markets rose with volatility.
2. But yesterday US markets were up without volatility.
3. So Asian markets are up.
4. SGX Nifty is trading around 7830, about 50 points higher.
5. I did mention yesterday that there is going to be a down day in the next few days.
6. But that has happened yesterday itself.
7. This is the power of short sellers.
8. Both Nifty and Bank Nifty futures traded at discount to the spot levels in the afternoon after trading at premium in the morning.
9. Nifty future lost 25 points only due to this effect.
10. This kind of sudden selling by huge quantities and bringing futures to discount always happens in the week before expiry.
11. Usually it happens either Thursday or Friday.
12. Last month it happened on Wednesday, I mentioned that it was probably due to one holiday.
13. This time it has happened on Tuesday, also there is one holiday this week.
14. Everything was normal, yet Nifty future fell 90 points intrday yesterday.
15. But still Bank Nifty has out performed.
16. It was ITC and Infosys that brought the markets down.
17. Markets are expected to be volatile going ahead as volumes will dry up.
18. Brent crude and WTI crude prices coincided today for the first time since 2010 as US has lifted the oil export ban.
19. Banks may lead the recovery today.
20. Nifty should take support at yesterday's low and resistance will be at 7880.