Pre Market Report, November 24, 2016 | Stocks and Commodities

November 24, 2016
Time: 8.20 am

Pre Market Report:

1. Dow and S&P 500 hit a record high once again.
2. Nasdaq ended down marginally.
3. But Fed minutes showed that the interest rate hike is imminent in December.
4. That news is having effect in Asian markets.
5. Most Asian markets are down.
6. So following Asian markets, SGX Nifty is down by about 60 points.
7. Thre re many possible outcomes for today's market.
8. Today's market is crucial due to expiry.
9. First, in my experience, most of the time when markets are in trouble, expiry used to be at the lowest point of the series.
10. There was some hope in the last two days that the expiry will not be at the lowest point, but SGX Nifty is bringing back that fear.
11. Then, SGX Nifty level was not a good refection as we have seen in the last many days.
12. One day SGX Nifty was positive, but we fell nearly 200 points.
13. Even yesterday SGX Nifty was around 8060, but within few seconds of opening, here Nifty future fell to 7980.
14. SGX Nifty is just refelcting the global cues.
15. In the last 10 days when the whole world was moving higher, we continued to move lower.
16. Then why should follow global cues today?
17. FIIs in the last 6 days alone have created long positions worth 7000 crores in index futures and stock futures.
18. Then who are the corresponding sellers? Since DIIs are not allowed in F&O, it is only local retail and HNIs and operators who have shorted to this magnitude.
19. Will they cover the shorts? Only time will tell.
20. Technically also, some stocks are looking better.
21. Banks keep reducing interest rates which clearly indicates that low interest period is coming which is actually good for both Banks and Corporates.
22. I have seen few times during this kind of senarios, Nifty shot up within few seconds of opening or Nifty shooting up in the last half an hour of trade.
23. It depends who put the buy orders, if it is Institutions, the short covering will come in the last half an hour.
24. Then there were many occasions when markets continued to fall.
25. When markets fall due to major issues like Demonetisation and US rate hike, nobody knows where the bottom is.
26. Even people are confused in Singapore, SGX Nifty fell nearly 60 points intraday, in just two hours today morning.
27. So one thing is sure, we are in for a high volatile trade today.
28. Markets are not likely to trade in one direction.
29. After a long time, HDFC Bank ADR was up in US.
30. So we get all kinds of positive and negative news, even I have not been confused to this level in the past many years.