Pre Market Report, December 16, 2016 | Stocks and Commodities

December 16, 2016
Time: 8.30 am

Pre Market Report:

1. US rate hike has become a non event for stock markets except a knee jerk reaction yesterday.
2. Many people have boyght both Put and Call options expecting sharp swing in the markets.
3. But they have all lost huge money as Volatilty index fell and markets did not make big moves on either side.
4. At the money Nifty 8200 Call and Put fell by Rs 25 and Rs 8 respectively.
5. At the money Bank Nifty 18400 Call and Put fell by Rs 12 and Rs 87 respectively.
6. Nobody expected 'Brexit' to happen, it happened. Nobody expected Trump to win, but he won. So those are 'surprise' events.
7. But everyone expected Fed to hike rate and they have done that, so there is no 'surprise'.
8. Still markets fell slightly as Fed has indicated three rate hikes in 2017 when most people expected two rate hikes in 2017.
9. But we should also remember the same fed indicated 4 rate hikes in 2016, but they have done only one.
10. So future rate hike in 2017 depends on many other factors at that point of time.
11. After falling yesterday, most markets are stabilising today.
12. SGX Nifty also trading almost flat around 8180.
13. Both FIIs and DIIs are net sellers in Cash market.
14. FIIs have sold in both index futures and stock futures.
15. It is surprising that markets did not fall much despite all round selling.
16. In the short term, markets are likely to be under pressure.
17. Nifty is likely to trade between 8000 and 8300 until the end of this expiry.
18. Axis Bank saved the Bank Nifty. HDFC Bank has no strength to move higher.
19. There were a number of block deals in ICICI Bank yesterday and that stock will be in focus today.
20. Power stocks see delivery based buying in the last few days.
21. Nifty future may trade between 8120 and 8220.