Post Market Report, December 17, 2014 | Stocks and Commodities

December 17, 2014
Time: 9 pm

Post Market Report:

1. Markets were highly volatile today.
2. Bank Nifty fell by more than 300 points and then shot up by more than 500 points and again fell by nearly 200 points. Bank Nifty swung by more than 1000 points.
3. In the morning, selling pressure was there, then came the reported news that LIC is buying actively in PSU Banking stocks, then came short covering.
4. Today's trade is similar to the trade last year August when Nifty touched the low of 5100.
5. That day also exactly same thing happened, markets opened lower and huge selling pressure as there, then the LIC buying news came and recovered most of the losses to close marginally lower.
6. Then that day's low was the low for that year, then markets slowly trended higher.
7. If the same logic goes, then today's low should not be breached.
8. Sentiment improved after Russian markets opened firm.
9. Russian markets were up by 6 to 7%.
10. After our markets closed, Russian markets have shot up and now trading about 17 to 18% higher.
11. Their currency also appreciated by about 10%.
12. US markets are trading higher.
13. Europe also recovered most of its losses.
14. But one disturbing factor is that FIIs have sold for more than 1600 crores, highest in the recent months.
15. This selling comes on top of yesterday's heavy selling of more than 1200 crores.
16. DII buy figure was more than 1200 crores show that the report that LIC was buying was correct.
17. Also PSU Bank Index was up by 1.3%, best performing sectoral index also proves that the news was correct. 
18. But tomorrow's trade will focus only on Fed.
19. If there is Dovish comment, then markets are likely to go up all over the world as the markets all over the world are in over sold region.
20. On one side, US economic situation is improving and on the other side crisis similar to 1997-98 emerging markets financial crisis is unfolding. So Fed has to balance both.
21. Until mid night, we have to keep our fingers crossed.
22. Let us hope markets stabilise here. I have more long positions than short positions.