Pre Market Report, December 6, 2016 | Stocks and Commodities

December 6, 2016
Time: 9 am

Pre Market Report:

1. US markets closed higher.
2. Asian markets are all higher.
3. Yesterday's Italy refrendum has become like Brexit.
4. Markets went down intraday but shot up later.
5. Since we have factored in this rally yesterday itself, SGX Nifty is trading marginally lower.
6. FIIs continue to sell in Cash market but not in huge quantities.
7. Crude and Gold prices are down.
8. Now markets will focus on RBI policy.
9. In the last few weeks Bank Nifty has underperformed.
10. So any significant rate cut will lift Bank Nifty.
11. HDFC Bank was the main drag which is finding difficulty in trading firmly above 200 DMA.
12. Auto sector did well yesterday which may continue due to rate cut hope.
13. Once RBI rate cut rally is over, markets are likely to come under pressure again due to US rate hike fear.
14. 25 basis point rate cut will not make markets happy, a minimum of 50 basis point rate cut is required for markets to move higher.
15. Yesterday Sun TV was up by 12% and the run is likely to continue today for obvious reasons.
16. Nifty future may trade between 8120 and 8220.