Post Market Report, March 4, 2015 | Stocks and Commodities

March 4, 2015
Time: 6 pm

Post Market Report:

1. I could not write 'Pre Market Report' today morning as I had some personal work in Singapore.
2. When I came home at 9 am (Indian Time) I was surprised by RBI rate cut.
3. In fact two days before there was an article in Economic Times which said RBI is likely to cut rates by the end of this week.
4. Even RBI Governor said in a meeting earlier that further cut depends on Budget.
5. But the market movement was so amazing, Bank Nifty future fell 1000 points from intraday high.
6. This is despite huge buying by institutions in cash market.
7. FIIs have bought for Rs 2786 crores and DIIs have bought for Rs 17 crores.
8. Many stocks have fallen more than 10% from intraday high.
9. PSU Banks index fell more more than 8% from intraday high.
10. Surprisingly defensive sectors like FMCG and Pharma were up and all rate sensitive sectors wre down.
11. Despite such a big movement, India VIX actually fell.
12. This shows that the fall is a knee jerk reaction to profit booking.
13. Markets are not likely to fall significantly from the current levels.
14. That is by assuming there is no significant global risk.
15. The fall was severe after 2 pm when Europe markets also fell.
16. After seeing the FII figure, SGX Nifty is trading about 25 points higher now.
17. So markets will be in consolidation mode for next few weeks.
18. As I said earlier, Nifty is likely to trade between 8800 and 9200 for some more time.
19. Now, after RBI rate cut, 8500 in Nifty will be a strong support, in case if 8800 is broken on the downside.