Post Market Report, December 17, 2013 | Stocks and Commodities

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December 17, 2013
Time: 6.15 pm

Post Market Report:

1. Morning rally fizzled out.
2. Markets fell for 6 consecutive days.
3. If RBI policy and FOMC decision are not favorable, it will continue to fall.
4. But general expectation is that RBI will hike rate only by 25 basis points.
5. In that case Bank Nifty should recover as it has fallen by 1100 points in the last 6 trading sessions.
6. There is every possibility that markets will shoot up tomorrow only to crash the following day.
7. Next two days of market will be highly volatile and will be difficult to predict.
8. Even technical bounces lasting only intraday.
9. Today FIIs have bought for Rs 249 crores in cash market.
10. Tomorrow Bank Nifty will swing at least 400 points.
11. So for traders, it is better to be away for 2 days.
12. Though Europe opened negative, now they have recovered.
13. If US markets close positive tonight, then our markets will open flat and then will react to RBI news after 11 am. Otherwise it will open gap down and that will be bad for traders.
14. On January 1, 2013, Nifty was at 5950 and Bank Nifty was at 12650.
15. Now Nifty is at 6150 and Bank Nifty is at 11200.
16. Banks have lost more than 10%, since banks constitute around one third of Nifty, without Bank Nifty, Nifty would have done much better.