Post Market Report, October 28, 2015 | Stocks and Commodities

October 28, 2015
Time: 7 pm

Post Market Report:

1. Yesterday Axis Bank came out with results in line with expectation.
2. But Rs 1800 crores worth of loans has been sold at a massive discount of 35% to ARC (Asset Restructuring Company).
3. I was not aware of this development until 9 am.
4. Axis fell 10% in pre open market and then only I searched for the reason and came to know about this news.
5. Yesterday it was HDFC and Lupin.
6. Today it was Axis and ICICI. 
7. When Axis fell, it brought the fear of NPA among all other banks and hence all banks fell.
8. Since my Pre Market Report was written without Axis Bank news, everything gone wrong.
9. 8200 support did not hold.
10. In fact, I had position in 8150 Put which I had to shift to 8100.
11. There was a delivery based selling of nearly 1000 crores in Axis Bank today.
12. There was unwinding of 21 lakh shares in 8200 Put.
13. Late in the afternoon there was a news about increasing the FII limit in PSU Banks and then markets recovered partially.
14. Europe opened in Green did not help our markets as the downside momentum was very strong.
15. FIIs have sold for Rs 731.17 crores and DIIs have bought for Rs 160.17 crores in cash market.
16. With so much commotion, Bank Nifty fell only 435 points but 600 points down from the current level i.e. 16800 Put option closed at Rs 7.5. Those who have surplus money, imagine getting about 1.5% return in one day. I sold this Put option at the close.
17. I do not think, Bank Nifty is going to fall 600 points tomorrow.
18. I also sold 17800 Call option for hedging.
19. Tomorrow will be an interesting trade, I guess, if markets come down in the morning, then there will be a short covering rally in the last one hour.
20. We will discuss this tomorrow morning.