Pre Market Report, November 29, 2016 | Stocks and Commodities

November 29, 2016
Time: 8.50 am

Pre Market Report:

1. US markets closed lower but that is perfectly OK as they are trading at all time high.
2. Most Asian markets are trading flat with positive bias.
3. SGX Nifty is trading around 8155 about 10 points higher.
4. Yesterday once again FIIs have sold for more than Rs 1400 crores in Cash market.
5. If I remember right, this time FII selling is highest after 2008 crash.
6. But they are buying in F&O in huge quantities.
7. So the signal is confused one.
8. However DIIs keep buying shares in Cash market.
9. Nobody actually know the actual impact of Demonetisation in the short term, though everyone agree that long term benefits are more.
10. That is why DIIs keep buying as they take usually long term view.
11. The first economic indicator after Demonetisation will be out in the next few days, the monthly Auto and Cement sales figures.
12. So that will add volatility to Auto and Cement stocks.
13. Then comes RBI policy, though nobody is expecting rate cut after CRR issue.
14. SGX Nifty has not been reflecting the true picture for the last three weeks.
15. So we do not know what is going to happen today.
16. 200 Day SMA is positioned at 8156, so markets may see further short covering rally once this level is crossed.
17. In the last many weeks, Nifty and Bank Nifty were behaving differently in many technical parameters.
18. For example, RSI showed over sold in Nifty but not Bank Nifty.
19. But with yesterday's fall in Bank Nifty, now both Nifty and Bank Nifty are showing same trend.
20. So we need to see how markets move from here onwards.
21. Yesterday though India VIX was down in the morning, it shot up in the afternoon.
22. December is the period which is very good for investors but not for traders.
23. Nifty future may take support at 8080.
24. The resistance will be at 8200.