Pre Market Report, December 12, 2016 | Stocks and Commodities

December 12, 2016
Time: 8.25 am

Pre Market Report:

1. We are entering into a very important week of trade.
2. The biggest event of the year, Fed rate hike, will dominate the markets all over the world this week.
3. Many people say 25 basis point hike is already factored in.
4. But how far we can believe all these is a billion dollar question.
5. Many times when everyone painted a bad picture, markets rallied.
6. The last two examples are Brexit and Trump.
7. On both occassions, everyone said markets will collapse, but markets rallied after knee jerk reaction.
8. So what is going to happen after the Fed event, nobody knows.
9. But one this is sure, volatility will keep moving higher until the end of the event.
10. That can be seen today even in SGX Nifty today morning.
11. SGX Nifty hit a high of 8310 in the early morning then hit a low of 8230 just minutes ago.
12. This is a huge swing of 80 points, in less than 2 hours, that too without any newsflow.
13. SBI led the rally on Friday as SBI sold a small stale in SBI Life.
14. That stake sale valued SBI Lift at Rs 46,000 crores.
15. We can expect SBI Life to be a separate company which will be coming out with Public Issue in order to unlock value for SBI.
16. China and Hong Kong markets are down and that could be a reason for mini panic in SGX Nifty.
17. But European futures are all trading in Green.
18. Oil prices are moving higher and so energy sector will be in focus.
19. IT stocks will be in focus after Trump's comment about H1B visa.
20. We need to see how PSU Banks move today after SBI news.
21. There was some short covering in Axis Bank and ICICI Bank on Friday, but no good show by HDFC Bank. So Private Sector Banks will also be in focus.
22. Banking stocks will be in focus in the next few days as Inflation data is likely to be favourable.
23. Vegetable prices fell drastically after demonetisation and that may be a very good news for Inflation.
24. Low inflation with low IIP data will bring rate cut hope to banking stocks.
25. Real estate stocks, particularly DLF, will be in focus as they are beaten down after Demonetisation and some of these companies declaring decent set of numbers.
26. Sun TV will continue to be in focus due to political developments in Tamil Nadu, Central Govt. has given security clearence for their radio channels.
27. Markets may in in a consolidation mode for next few days and brekout or brekdown may happen only after Fed event.
28. FIIs turned net buyers will cap the downside.
29. Nifty future may trade between 8220 and 8320 today.