Pre Market Report, December 22, 2016 | Stocks and Commodities

December 22, 2016
Time: 8.30 am

Pre Market Report:

1. US markets closed slightly lower ahead of their GDP data.
2. Most Asian markets are flat with negative bias.
3. SGX Nifty is also down by about 20 points.
4. Yesterday FIIs have sold for Rs 1178 crores which is a huge selling.
5. However DIIs have bought for Rs 1058 crores cushioning the fall.
6. One consolation is that there was no heavy selling in F&O by FIIs.
7. But the trade set up remains the same. FII selling in Cash and stock futures, FII buying in index futures and DII buying in Cash market.
8. If I am not wrong, this is the first time, our markets are falling continuously while the global cues are good.
9. FIIs are selling heavily as they may be absent from the markets next week.
10. But it is surprsing that markets are not falling significantly despite such a huge selling by FIIs.
11. Vix also keep going down despite such a huge selling.
12. Yesterday Bank Nifty closed at the lowest closing level in this month.
13. Though Bank Nifty traded lower during the intraday, on closing basis, yesterday's close was the lowest this month.
14. ICICIBank and Axis Bank move in opposite direction for last many days and both were very volatile.
15. This huge volatility means that these two stocks may bottom out on a long term basis.
16. For the entire year 2016, we are likely to close almost flat.
17. Bank Nifty is likely to be volatile due to weekly expiry.
18. Nifty should take support at 8020.
19. Bank Nifty should take support at 18000.
20. Slow grinding down will continue for next few days.