Pre Market Report, December 20, 2016 | Stocks and Commodities

December 20, 2016
Time: 8.15 am

Pre Market Report:

1. US markets closed higher.
2. But Asian markets are mostly flat with downward bias.
3. Particularly China and Hong Kong are down.
4. So SGX Nifty is also flat with negative bias.
5. Yesterday FIIs have sold for Rs 535.77 crores which is a high figure in a low volume day.
6. Volume was nearly half of usual volume and still FIIs have sold so much.
7. The consolation is that DIIs have bought for Rs 556.36, almost matching the FII sell figure.
8. In F&O, FIIs have bought in index futures and sold in stock futures.
9. One good thig happened yesterday was the fall in India VIX.
10. Despite Nifty falling nearly 40 points, even in the money Put option, Nifty 8200 Put, fell.
11. All out of money options fell.
12. So market is thinking that there will be no big move on either side.
13. It will be a slow grind on either side.
14. Mistry resigning from Tata boards may be a good news for Tata stocks.
15. Crude prices are down, so paint companies may stabilise.
16. Asian paints fell more than 8% in the last few days.
17. On the other hand, the sector that was supporting the market, energy sector, may come under pressure.
18. Pharma stocks continued their southward journey.
19. Sun Pharma, the leading Pharma stock is avialable at about half the price from its peak, with two years of time correction, the price is almost 70% lower.
20. But the problem may well continue into January 2017.
21. Markets are likely to make bottom only after Q3 results.
22. Only after Q3 results, markets may move higher significantly.
23. For December series, Nifty will be trading between 8000 and 8300.
24. Today Nifty future is expected to trade between 8080 and 8180.
25. Bank Nifty is looking more weaker.
26. Bank Nifty is just 150 points away from Trump low of 8144.
27. Bank Nifty is likely to trade between 18000 and 18500 until the end of December.
28. Earlier I sold Nifty 7900 Put and 8350 Call, now I am planning to sell 8300 Call if there is any intraday bounce in Nifty.