Nifty 8000 Litmus Test, December 29, 2016 | Stocks and Commodities

December 29, 2016
Time: 8.30 am

Pre Market Report:

1. US markets closed lower after so many days of rise.
2. So Asian markets are all trading with negative bias.
3. SGX Nifty is trading about 25 points lower.
4. Whether nifty will expire above 8000 is a billion dollar question now.
5. FII selling continue and yesterday also FIIs have sold for Rs 527 crores in Cash market.
6. Nifty was very volatile in the last three days.
7. On Monday Nifty future broke 7900 and the low was 7896 and then in just two trading sessions, yesterday morning it was at 8100.
8. And then fell and it is likely to trade around 8000 today morning.
9. This kind of volatility, that too very close to the expiry, is not good for option sellers.
10. NSE coming out with IPO is a good news in the IPO front.
11. In 2003, markets started a huge bull run just after Maruti IPO.
12. Let us see whether the same happens in 2017 with NSE IPO.
13. Bank will have one more month of leeway for NPAs upto 1 crore.
14. But since the global cues are not that good and expiry related issues will dominate the markets, I do not know how far this news is relevant.
15. Yesterday though FIIs have sold in Cash market, there was huge buying by FIIs in F&O. DIIs also have bought in huge quantities.
16. One thing will sure, markets will be volatile in the afternoon.
17. There may be some kind of short covering rally in the afternoon.
18. Nifty should take support at 7980.
19. Resistance will be at 8080.