Pre Market Report, December 19, 2017 | Stocks and Commodities

December 19, 2017
Time: 8.55 am

Pre Market Report:

1. Yesterday markets were highly volatile as expected.
2. Since I cut 80% of my positions on Friday I could survive and make decent profit yesterday.
3. Global cues have nothing to do now for our markets.
4. Despite such a huge volatility Nifty has been trading between 10000 and 10500. All those who sold 10000PE and 10500CE in the beginning of this month making good profits.
5. First let us analyse Gujarat results briefly.
6. BJP got about 15 to 16 seats lower than 2012.
7. But in 16 seats, BJP lost because of NOTA votes, congress still got same vote as 2012, yet managed to bag about 15 to 16 seats higher.
8. Another interesting thing is that BJP lost in rural area not urban areas.
9. People were telling 'Demonetisation and GST' will turn traders and business people against BJP.
10. But the best business area of Surat, BJP won all the seats.
11. Even people who are unhappy with BJP chose NOTA instead of Congress.
12. So it is not a big loss for BJP as media is projecting.
13. So as for as stock market is concerned, we will forget all these political things in two to three days.
14. Once again we will follow Global cues in the short term and look for earnings revival in January.
15. There are no more triggers for this month and hence markets may consolidate in the range of 10200 and 10600.
16. If there is any short covering Nifty may try to test all time high.
17. No meaningful rally can be expected in December.
18. Now the focus will turn to Budget which is about one and half months away.
19. There was no significant selling by FIIs despite the panic yesterday.
20. Nifty future may trade between 10360 and 10460.