Pre Market Report, January 2, 2017 | Stocks and Commodities

January 2, 2017
Time: 8.55 am

Pre Market Report:

1. Asian markets have opened with a positive note.
2. SGX Nifty is trading around 10525.
3. Core sector growth came at 6.8% which is 13 month high.
4. China Manufacturing PMI also came above 51, which is a good sign.
5. After higher PMI data, both Hong Kong and China markets are doing very well.
6. But one big problem for India is the rising crude prices, Brent crude is trading above US$67.
7. So Auto stocks may be under pressure.
8. SBI cut the base lending by 30 basis points.
9. Other banks may follow SBI.
10. Interest rates are clearly heading lower.
11. RBI has stopped 8% bond scheme.
12. Forget about short term volatility, medium to long term prospects are good for stock market.
13. 2018 is not going to be different from 2017, when Gold, Real Estate, Bank FD returns were very poor compared to stock market returns.
14. After 5 months of selling FIIs have bought for three consecutive days in Cash market.
15. We need to see for few more days whether this trend continue.
16. Yesterday markets fell drastically due to huge selling by DIIs and due to low volume.
17. Once again Nifty has come between 10000 and 10500.
18. So the breakout may be delayed further.
19. Yesterday India VIX shot up but premiums were very low.
20. Yesterday I sold Bank Nifty 24800PE in weekly options and 24000PE in monthly options.
21. March series Nifty options are not active.
22. As and when there is liquidity, I plan to buy 10000PE and sell 9800PE double the quantity.
23. I still think Nifty will not break 10000 in the short to medium term.
24. Today Nifty future should take support at 10480.
25. Resistance will be at 10580.