Pre Market Report, January 2, 2016 | Stocks and Commodities

January 2, 2016
Time: 8.30 am

Pre Market Report:

1. US markets closed lower on Friday due to thin trade.
2. Most Asian markets are closed due to new year holiday.
3. Most countries declare holiday on Monday if New year happens to be on Sunday.
4. But our markets are open, the only other market that is open today is South Korea.
5. So no global cues, only local cues.
6. The big news is that SBI has cut its MCLR rate by 90 basis point which is one of highest cut in the recent years,
7. So Auto, Real Estate and Banking stocks will be in focus today.
8. In addition PM's announcement of interest subsidy for Housing Loan below 12 lakhs will also have some impact.
9. SGX Nifty is trading almost flat due to thin volume.
10. FIIs were net sellers in Cash market but bought in F&O in huge quantities.
11. DIIs continue to buy in Cash market.
12. The markets may make big moves on the higher side, if there is some trigger.
13. First week of 2017 trade is very imortant to see whether FIIs will continue to sell or they make a U turn to become buyers.
14. If they start buying, then markets will move significantly higher.
15. Since the double bottom has been made around 7920, that level will become very strong support.
16. But upside is open upto 9000.
17. If markets turnaround, then we can expect Nifty to touch 9000 by February or March.
18. So the first few days of trade is very important now.
19. Let us see what happens today.
20. Nifty may trade between 8120 and 8220 today.