What to expect from Markets Next week.

Yesterday our markets were very volatile as expected.The World markets barring Japan and Hong Kong markets ended negative.(Japanese markets were closed on Thursday and Hang Seng closed down by 2.5% on Thursday when all the other markets rallied after the referendum in Greece was scrapped).

In Greece, Prime Minister George Papandreou won the vote of confidence.That is a good news as the immediate uncertainty of early elections is averted which would have caused a turmoil again in the Euro zone.

A report by the UN atomic watch dog which is expected to be released next week is keenly watched by US and Israel.If the report endorses the fact that Iran is building Nuclear warheads, this time an attack over the facilities may be carried out by the US and Israel on Iran.The news about the attack on Iran's nuclear facility is not a new one.There had been rumors every now and then about the same for several years.French President at the G20 summit said,If Israel's existence is threatened, then France would not stay idle and watch.If Iran is attacked, it would close the Strait of Hormuz.Almost 40% of the world's crude oil trades happen through this strait.This would lead to a spike in Crude oil prices and it would cause huge inflationary pressure for our country.The two digit inflation figures and the higher interest scenario is a dampener for our growing economy.Expect a huge volatility in the interest sensitive sectors and the oil marketing and the oil exploration companies.

Alex sir's View on Markets.

Nifty has got a good support at 5200 levels and it is going to be a herculean task to move above 5385/5400 in the near future.A move above 5400 may result in a break up rally and a move below 5167 will trigger huge selling pressure and we may test lower support levels.
Stay cautious about the rate sensitive sectors and start accumulating the mid-cap stocks(at lower levels) which had shown excellent growth quarter on quarter.

Market Report

Before discussing about all the chaos in the Greece let us see some interesting figures about the Near term debt obligations of Greece.

Kindly click on the image for a better view.









And yesterday the referendum was scrapped and the Greek PM did not resign and the Vote of Confidence will happen in the Greece parliament today.

Meanwhile Greece Finance Minister said, they need the 6th tranche of aid before Dec 15th.

And in another twist,two Italian ruling party law makers withdraw their support to Berlusconi.

As the news about scrapping the referendum was out,the US markets rallied and they were almost up by more than a percent and a half.


Expect huge volatility in our market today and the last two hours of trade is going to be very volatile on account of Greece VoC and do remember Monday is a trading holiday for our markets.
Nikkei which was shut yesterday on account of Culture day holiday is trading up by 120 pts,1.3% at 06.45 AM IST.

Hang Seng which closed 2.5% down yesterday is trading up by 3.4% at 07.12 AM IST.

Nifty Call

Book profits in Nifty fut around 5225.

Nifty Call

SELL NIFTY FUTURES BELOW 5240.SL 5270.

World News.

Japanese Markets are closed today on account of Culture day.

If the Greece parliament's Vote of confidence which is supposed to happen tommorrow fails,there would

be early election and the referendum would be Called off.

All the funds to Greece are currently frozen and the EuroZone expects Greece to pass the Referendum

with a ,"YES",before December 18th.If the referendum fails Greece will have to default.

And our sources say,the revolt against the Greece PM to happen before friday.Stay cautious when the

European markets open.

The Italian borrowing costs went up recently and the opposition is eventually calling for the

resignation of the Prime Minister.

According to Luxembourg-based spokesman Christof Roche,"The European Financial Stability Facility is

putting off the 10-year issue “due to market conditions".
Aother official associated with the issue said in a conference call with the investors that the fund

will wait for the outcome of the G20 summit in Cannes,France before selling the Bonds.

China's transport Minister says Global shipping Industry is experiencing a downturn,worse than 2008

financial crisis.

FTSE fut is down by 72 points at 8.45 AM
Dow Fut is down by 140 points at 8.45 AM.
SGX is down by 40 pts at 8.45 AM.

Exposure to Greece

Kindly Click on the image for a clear view.

Market Report

The OI of Nifty futures is far higher than the last few series at the beginning of the month.

And the interesting point to note is that the huge premium to the spot continues even when the markets are falling.

Markets continued to fall as Greek PM said EURO membership will also be in the Referendum.

Greece Govt- As cabinet agrees to referendum,vote to be held soon.

The Vote of Confidence to happen on Friday.

US Sources-The Greece referendum to happen before Christmas.

All the Asian Indices are trading negative following the global sell-off.

Nikkei Down by 1.92%
Hang Seng down by 1.22%
S&P/ASX 200 down by 1.48% at 07.45 AM IST.

SGX Nifty is trading at 5233 at 07.50 AM IST.

FTSE Futures trades 30 pts up at 8 AM IST.
DOW Futures trades at 80 pts up at 8 AM IST.