Pre Market Report, December 24, 2015 | Stocks and Commodities

December 24, 2015
Time: 8.35 am

Pre Market Report:

1. US markets were up yesterday.
2. Asian markets are up except China.
3. SGX Nifty is trading around 7890 after hitting a high of 7900.
4. So far it was one day up and one day down for our markets.
5. But that may change today.
6. Yesterday FIIs have bought for Rs 385.82 crores in Cash market and DIIs have bought for Rs 632.64.
7. The resistance at 8550 is broken and the next resistance is at 7980.
8. If the positive momentum continues, we can expect Nifty to expire between 7980 and 8020.
9. Though Nifty went very close to September low this time, Bank Nifty did not go that low.
10. So even in the medium term outlook Banks are positioned in a better place than other sectors.
11. But this expiry Banks have under performed.
12. So there may be more short covering in Bank Nifty in the next few days.
13. One consider going long in Nifty if there is any dip with a target of 7980 with stop loss at 7850.
14. Markets are expected to trade with some positive bias until afternoon.
15. In the last one to hours, there may be some sharp move on either direction in Nifty. 
16. Sharp move is expected in the final hours as there is a three day weekend holidays.
17. Also many traders will like to square up their positions so that they can go for holidays between Dec 25 and Jan 1.
18. India VIX is trading below 14 which is a good sign. There may be no sharp moves of more than 100 points on either side in the next four days.
19. As it was the case in the last few months, this month also mostly option sellers are making money as the markets did not go anywhere on month on month basis.
20. Nifty future is expected to trade between 7820 and 7920.