Pre Market Report, December 15, 2016 | Stocks and Commodities

December 15, 2016
Time: 8.55 am

Pre Market Report:

1. I could not write "Pre Market Report" for the last two days as there was no internet connection in my area due to Cyclone.
2. No electricity, no phone and no internet in many ares, now I am getting some signals from mobile internet.
3. US hiked interest rate along the line expected.
4. But comment about future hike is what troubling the markets.
5. People expected two hikes in 2017 but Fed said they plan 3 hikes.
6. So all markets are falling.
7. Though SGX Nifty started moderately down, after seeing huge fall in Hong Kong shares, SGX Nifty also started falling drastically.
8. Now the currency devaluation of China will be the biggest fear.
9. That is why we are reacting too much to Hong Kong market's fall.
10. But markets may stabilise at lower levels.
11. The hope of a rally in 2017 is also going down.
12. Now every four months, there will be a rate hike by Fed.
13. Most of the frontline stocks have corrected by 40 to 50% by price value and 2 to 3 years by time value.
14. So I expected markets to bottom out somewhere here and expected a big bull run in 2017.
15. That may get delayed due to the recent developements.
16. Private sector banking stocks may come under pressure as that is where most FIIs have huge holdings.
17. Bull market will begin only when there is pessimissm everywhere.
18. Let us see whether that happens in 2017.
19. Huge inflow to mutual funds will ccap the downside for Nifty.
20. Nifty will find a strong support at 7800.
21. For December series, Nifty has the highest open interest at 8000 among Puts and at 8300 among Calls.
22. So Nifty may well trade between 8000 and 8300 until the end of this month.
23. Now the biggest event of the year is over, Volatility index may fall by the end of the day.
24. I have bought Bank Nifty 18000 Put and sold double the quantity of 17800.
25. Yesterday I also went short in Bank Nifty and sold 18400 Put option.
26. Nifty future may trade between 8080 and 8180 today.
27. I plan to sell 8300 Calls if there is any intraday recovery in Nifty.
28. IT stocks may support the markets as Rupee is expected to depreciate.