Pre Market Report, December 2, 2016 | Stocks and Commodities

December 2, 2016
Time: 8.40 am

Pre Market Report:

1. US markets closed mixed with Dow up significantly and Nasdaq down significantly.
2. Crude prices are up by 15% in two days, which is not good for India.
3. Lower GDP data, lower Manufacturing PMI data also affecting our sentiment.
4. Yesterday though Asian markets were all in Green, in the afternoon Europe opened lower.
5. So there was selling in our markets in the afternoon.
6. Today Asian markets are also in Red.
7. So SGX Nifty is down by about 50 points.
8. So far banks have received Rs 11 lakh crores and that is very bad for Govt.
9. It seems that Demonetisation will be a failure.
10. The benefits of Demonetisation is much lower than the problems.
11. I was bullish about markets and have been saying that our markets will start moving higher from January 2017.
12. But if Demonetisation fails, then the recovery will be a question mark.
13. Most blue chip companies have fallen anywhere between 25% and 40%.
14. If this is a normal correction, the fall should stop somewhere here.
15. From today, markets will be highly volatile for next two weeks.
16. Today evening, US employement data is a very important data.
17. Then comes Italy refrendum on Sunday, the main reason why Europe was weak yesterday.
18. Since Brexit and US election predictions were totally wrong, nobody wants to believe opinion polls.
19. Record amount of short positions were created in Italy ahead of refrendum.
20. In case if PM wins the refrendum, there will be a huge shortcovering rally on Monday and that will aid the sentiment all over the world.
21. Then, next Wedesday, our RBI policy.
22. Then following week, US FOMC meeting.
23. So markets are going to be volatile.
24. For traders, it is time to be out of market and go for holiday.
25. For investors, it is the best time to accumulate stocks for long term.
26. Nifty future may trade between 8140 and 8240.