Pre Market Report, December 19, 2016 | Stocks and Commodities

December 19, 2016
Time: 8.40 am

Pre Market Report:

1. US markets closed marginally lower on Friday.
2. That was mainly due to two reasons.
3. One, it was expiry day in US for F&O.
4. Second, around closing time, the news broke out that China had captured one of the US drones in South China Sea.
5. Later, on Saturday, China has agreed to return the US drone.
6. So there is no panic in Asian markets.
7. Yet most of the Asian markets are drifting down.
8. So SGX Nifty is also drifting down and now trading about 20 points lower.
9. Volumes have come down and markets are likely to be rangebound with negative bias today.
10. There are no majpr newsflow and markets may move according to global cues until the end of December.
11. Nifty may trade between 8000 and 8300 until the end of expiry.
12. I sold Nifty 7900 Put and 8350 Call on Friday.
13. Petrol prices were hiked during the weekend and hence Auto sector may fall today. Remember Auto stocks were up on Friday as there was no hike in petrol prices on Thursday night.
14. On the other hand, OMCs may do well.
15. Pharma stocks may continue to be under pressure.
16. Nifty future should take support at 8100 today.
17. Resistance will be at 8180.
18. With all leading Private Sector Banks doing very badly, particularly ICICI BAnk and Axis Bank, Bank Nifty is under performing and that may continue.
19. SInce European and US futures are trading in Green, the downside will also be limited.
20. Expect a lackluster trading for the next few days.