Pre Market Report, November 22, 2016 | Stocks and Commodities

November 22, 2016
Time: 9 am

Pre Market Report:

1. All the world markets are higher.
2. Yet we fell like pack of cards yesterday.
3. Nifty broke the psychological level of 8000.
4. Then selling accelerated and stop losses hit and Nifty hit a low of 7920.
5. Nifty broke Brexit low of 7927.
6. Bank Nifty was very close to Trump low of 18200.
7. For the Calender year 2016, Nifty turned negative.
8. Market will bottom out when mot bullish person turns bearish and market will top out when most bearish person turns bullish.
9. Yesterday even the most bullish persons turned bearish.
10. Let us see whether market bottoms out.
11. I feel that Nifty has bottomed out at 7920.
12. By yesterday the only bullish sector, PSU Banks, have turned bearish.
13. So that is why I feel that markets has made a bottom.
14. However, we need few more days to confirm.
15. I expect Nifty to trade between 7900 and 8100 for the next few days.
16. Then markets may move higher.
17. But markets will not move significantly higher until end of December.
18. There will be a period of high volatility but within a range.
19. Nobody actually knows the actual impact of Demonetisation.
20. RBI policy, US rate hike, traditionally not active December month, etc will make sure that markets do not move significantly higher.
21. Today SGX Nifty is trading above 8000 which is a positive sign.
22. Volatility index may fall and hence will favour option sellers.
23. As long as Nifty future does not fall below 7980, we can expect some short covering.
24. Markets may move violently due to expiry related issues.
25. There will be resitance at 8080.