Post Market Report, January 30, 2015 | Stocks and Commodities

January 30, 2015
Time: 7.20 pm

Post Market Report:

1. In the morning, everyone was expecting Nifty to trade above 9000.
2. Second time some profit booking came and Nifty fell.
3. Then came worst result from Bank of Baroda and Bank Nifty fell by about 400 points.
4. Then in the afternoon again another very bad results came from ICICI Bank.
5. Bank Nifty fell another 400 points, taking the intraday fall of nearly 800 points.
6. Day before yesterday, Nifty fell more than 100 points intraday.
7. Yesterday Nifty rose more than 100 points intraday.
8. Today Nifty fell more than 200 points intraday.
9. VIX has crossed 21 intraday and closed above 20.
10. So in the near term markets will be highly volatile.
11. Though markets fell so drastically, DIIs did not come to arrest the fall.
12. That is because of their commitment to bailout Coal India issue.
13. As per latest news, Coal India attracted only 5400 crores from FIIs and 1900 crores from retail.
14. Remaining amount of about 17000 crore should have come from DIIs and mostly from LIC.
15. Even the retail portion of the issue subscribed 1900 crore mainly due to arbitrage opportunity.
16. I applied for 1000 shares in two application and short the Coal India in futures at Rs 361.
17. I will get 1000 shares at Rs 340 by Monday, on Tuesday I will sell the shares and cover the short.
18. I will be making Rs 20000 without any risk, that too in few days.
19. This works out to be 5% return on my investment in few days time.
20. If not for this arbitrage, retail portion also would have subscribed mush lower.
21. FIIs have sold for Rs 771 crores and DIIs also have sold for Rs 38 crores.
22. Technically Nifty has made double top at 9000. Technically this is a very bearish sign.
23. So we have to see how markets move in the next few days.