Window Dressing at Year End or Trend Reverssal? December 30, 2016 | Stocks and Commodities

December 30, 2016
Time: 8.55 am

Pre Market Report:

1. US markets traded sideways due to thin volume.
2. Most Asian markets are also the same.
3. SGX Nifty is marginally higher.
4. Yesterday the future premium was very low between December and January Futures.
5. That could be one of the reasons for slight increase in SGX Nifty.
6. FIIs did not stop selling yet.
7. Yesterday also they have sold for Rs 662 crores.
8. Once again DIIs have bought more than what FIIs have sold.
9. Is it window dressing to keep the NAVs higher at the year end?
10. Or is it really more money flowing into mutual funds?
11. The answer will be known only next week.
12. The trend deciding week will be next week.
13. Despite such a huge selling by FIIs, if markets are moving higher like this, if FIIs start buying what will happen?
14. Axis Bank and ICICI Bank are still not recovering.
15. HDFC Bank saved the day.
16. I said earler, sometimes in the beginning of December, I went short in Nifty at 8320 and Bank Nifty at 19800 on the same day, but now Nifty is just 2% lower from that level but Bank Nifty is more than 9% down from that level.
17. So Bank Nifty has to perform well if markets are to reverse the trend.
18. Huge buying happening outside the Nifty.
19. Nifty future may trade between 8080 and 8180.