Pre Market Report, December 26, 2017 | Stocks and Commodities

December 26, 2017
Time: 8.45 am

Pre Market Report:

1. US markets closed slightly lower on Friday.
2. Asian markets are trading in a very narrow range.
3. Many Asian markets and European markets are closed today.
4. So there will be no global cues.
5. On Friday we closed at all time high closing.
6. So markets may try to consolidate.
7. I expect Nifty to trade between 10400 and 10600.
8. Nifty 10400PE added huge open interest.
9. Option sellers believe that 10400 will not be broken in the next three days.
10. At the same time, there is no unwinding in 10500CE.
11. Since 10500CE had the highest open interest from the beginning of this month, option sellers would have sold at a good premium, so even if Nifty trades above 10500, they are not likely to unwind as there is a lot of buffer.
12. If Nifty crosses 10520 and trades firmly, then we can expect some unwinding of 10500CE.
13. Nifty 10500PE also added huge open interest few days before.
14. So overall market set up looks like consolidation.
15. FIIs may not be active due to year end considerations.
16. DIIs have one more day after expiry for window dressing.
17. Most mutual funds gained more than 20% in 2016 as well as 2017.
18. IT stocks may be under pressure due to news and Metal stocks may shine.
19. The action will begin only next week.
20. Today we can expect Nifty future to trade between 10460 and 10550.