Pre Market Report, December 8, 2016 | Stocks and Commodities

December 8, 2016
Time: 8.35 am

Pre Market Report:

1. US markets closed at record high once again for 12th day after Trump win.
2. The rise was significant compared to last many highs.
3. That is mainly due to high expectation from ECB announcement today.
4. European future are all higher.
5. Asian markets are all higher.
6. SGX Nifty is trading very close to 8220, the high of yesterday and day before yesterday here.
7. This will be a huge gap up, considering the bearishness due to RBI policy.
8. If the markets hold on to the gains in the first half an hour, today may well be a breakout day.
9. Yesterday once again FIIs have become net buyers in Cash market.
10. Not only they have become net buyers, the volume has picked up.
11. If markets move higher with good volume, it is a good news for bulls.
12. Sun Pharma fell due to US FDA issue.
13. Banking stocks, Axis Bank particularly, fell due to RBI.
14. Nifty broke Trump low of 8002, hit a low of 7916 and then only bottomed out.
15. This has happened many day's before, but Bank Nifty did not break Trump low until day before yesterday.
16. Only yesterday, Bank Nifty broke Trump low of 18144, hit a low of 17960, recovered and closed above 18200.
17. So there is every possibility that Bank Nifty has also made its bottom.
18. Yesterday despite such a fall, Put option premiums did not shoot up.
19. Bank Nifty fell nearly 200 points, that too accompanied by a bad news from RBI, yet Bank Nifty Put option 17000 did not move higher.
20. So markets see this Bank Nifty fall as knee jerk reaction and temporary.
21. Italy refrendum is over, RBI policy is over, today it is ECB, then US Fed meet next week.
22. So markets will become stable only after all these events.
23. Until then markets will go higher if there is any good news and move lower if there is any bad new.
24. Today markets all over the world are moving significantly higher due to ECB, we need to see whetther ECB is going to meet the market expectation by today evening.
25. Nifty may trade between 8150 and 8250.
26. I sold Put options in Sun Pharma yesterday.