Pre Market Report, November 30, 2016 | Stocks and Commodities

November 30, 2016
Time: 8.30 am

Pre Market Report:

1. US markets closed higher once again after a good GDP data.
2. Asian markets are generally higher, though marginally.
3. SGX Nifty hit a low of 8140 yesterday night but now trading slightly in Green.
4. Yesterday markets were firm throughout the day and then came under selling pressure in the last one hour.
5. Sice the selling came after 3 big white candles, people are afraid whether this is a trend reversal.
6. Bank Nifty closed at the lowest point in the last 5 months.
7. Bank Nifty went very close to Trump low of 18144 on November 9.
8. Since this fall is due to huge FII selling, people generally think that FIIs are overweight in Private Sector Banks.
9. So private sector banks fall and this CRR increase only added fuel to the fire.
10. Today evening, our GDP data will be out and markets will be jittery towards the end of the day due to this major economic data.
11. However, the GDP data may not be bad as the period does not include Demonetisation period.
12. FIIs continue to sell in Cash markt.
13. FIIs have sold about Rs 20,000 crores worth of shares in November so far.
14. In October, they have sold about Rs 5,000 crores.
15. Even when markets crashed in last August due to China currency devaluation, FIIs did not sell this much. In last August they have sold about Rs 16,000 crores worth of shares.
16. Outside Nifty, markets look bullish. One day, Breweries stocks are up, next day Telecom stocks are up, next day Power stocks are up, and so on.
17. DIIs are in buying spree as markets are trading lower.
18. Today, Nifty will try to move higher and will try to defend 200 Day SMA.
19. If 200 DSMA is held and if Nifty future crosses and trades firmly above 8220, then the immediate target will be 8280.
20. But that is possible only if Bank Nifty recovers.
21. Yesterday night ICICI Bank ADR, HDFC Bank ADR are up by more than 2% in US, so there is every possibility there will be short covering in Private sector banks today.
22. If my Guess is correct, Nifty has bottomed out at 7916 and after some commotion in December, markets will start moving higher from January 2017.
23. Just like Nifty travelled from 6800 to 9000 from March 2016 to September 2016, from January onwards Nifty may travel from 7900 to 10,000.
24. I am suggesting to all my friends to buy in Cash market now.
25. Today as long as Bank Nifty does not fall, Nifty will try to break 8220.
26. Support will be at 8120 and resistance will be at 8220.