Pre Market Report, November 28, 2016 | Stocks and Commodities

November 28, 2016
Time: 8.45 am

Pre Market Report:

1. Crude prices are down as there is no agreement on crude outout cut.
2. But Dollar index is slightly down.
3. So there is one good news and one bad news.
4. Most Asian markets are positive.
5. But over the weekend RBI has increased CRR which will be sucking out about Rs 3.2 lalh crore of liquidity.
6. So Bank Nifty may under pressure.
7. Particularly PSU Banks and small Private Sector Banks may come under more pressure.
8. The whole Demonetisation issue is losing its momentum.
9. First, it seems that there were many loopholes where many oeople have converted black money into white. Many modus operadi were being published in news papers.
10. On the ground, black money people seems to be more confident.
11. Just few days before the asking percentage was 40% to covert black money but now it is between 15% to 20%.
12. Out of 14 lakh crore, about 8 lakh crore has already come to the Banks. We still have another 5 to 6 weeks, we need to see how much more will be coming to the banks.
13. At least 3 lakh crore should not come to the banks in order to justify the Demonetisation measure.
14. Most sectors were down in stock market, but banks were not that much hit as banks continue to get more money.
15. Now with this new CRR issue, even banks will come under pressure.
16. With this new CRR issue, the hope of rate cut is also going down.
17. If Nifty future stabilises between 8060 and 8080, that will be good.
18. I do not think there will be anything to worry except intial knee jerk reaction to CRR issue.
19. The resitance will be at 8200 at least for the next few days.
20. Decmber series is going to be volatile as I said earlier, so beteer to be either away from markets for one month or sell Call options on intraday bounces and sell Put options on intraday day falls at a far distance.
21. I will not suggest selling Call options below 8500 and Put options above 7500.
22. Bank Nifty, one may sell Put options at 17000 and below and Call options at 20000 and above.
23. We need another 6 to 8 weeks to understand the full impact of Demonetisation.