Pre Market Report, December 9, 2015 | Stocks and Commodities

December 9, 2015
Time: 8.30 am

Pre Market Report:

1. Yesterday was another disappointing day.
2. Markets fell sharply in the last 30 minutes.
3. Oil amd Metal stocks came under severe selling pressure.
4. The real trouble was in the midcap space, stocks fell anywhere between 6% to 10%.
5. FIIs have sold for more than Rs 500 crores in Cash market.
6. However DIIs have bought slightly more than what FIIs have sold.
7. Crude oil hit a fresh 7 year low, Brent crude fell below $40 intraday.
8. US markets fell as for most US oil companies the ruling crude prices are closer to their break even price.
9. Asian markets are down, economic data coming from China is not encouraging.
10. SGX Nifty is trading between 7680 and 7700.
11. When the markets open around the level indicated by SGX Nifty, Nifty will be less than 100 points from its 52 week closing low.
12. 52 week closing low was around 7600 and 52 week intraday low was around 7540.
13. Despite such a commotion  and Nifty falling for 5 consecutive sessions, India VIX is hovering around 16 which is a good news.
14. India VIX may shoot up next week ahead of Fed meeting.
15. People are also afraid of shorting the markets ahead of Fed for two reasons, one if GST bill is passed before that markets will shoot up and short sellers will loose money, second the Fed event is more or less factored into prices and hence markets may bounce back after the Fed.
16. Put Call ratio indicating bearish trend.
17. Highest open interest among Puts is at 7500 and among Calls is at 8000.
18. None of the sectors showing optimism and all sectors are falling.
19. Nifty future should take support at 7660.
20. Resistance will be at 7750.