Pre Market Report, December 21, 2016 | Stocks and Commodities

December 21, 2016
Time: 8.40 am

Pre Market Report:

1. US markets closed at record high once again.
2. Dow is at a kissing distance to 20,000.
3. But Asian markets are mixed.
4. SGX Nifty is up just by 5 to 6 points.
5. People expected low volume and absence of active FIIs in the last two weeks of December.
6. But it does not look like that. FIIs are selling heavily in Cash market.
7. Yesterday FIIs have sold for Rs 685.93 crores which is very high.
8. The trade was similar to the day before, FII sold in Cash market, DIIs bought in Cash market, FII sold in stock futures and FII bought in index futures.
9. Since markets are down for 5 consecutive days, markets may recover some lost ground.
10. But Nifty will not move significantly as any significant upmove will be used as an opportunity to sell.
11. I personally feel that markets have taken too pessimistic view about Demonetisation.
12. Once the dust settles down, markets will move higher but that may not happen in near future.
13. Markets will wait for Q3 results for the clue.
14. Despite markets falling for 5 consecutive days, VIX has been falling.
15. So markets may not fall significantly also.
16. So it may be one day up and one day down and markets may not go anywhere after few days.
17. Nifty future should take support at 8070.
18. Resistance will be at 8150.