Post Market Report, November 17, 2015 | Stocks and Commodities

November 17, 2015
Time: 6 pm

Post Market Report:

1. Yesterday everyone was expecting Nifty to break below 7700 and surprisingly markets shot up to close above 7800.
2. Today's surprise did not come from Nifty, it came from India VIX.
3. India VIX fell more than 5%.
4. So option premiums fell both in Calls and Puts.
5. But our markets are the worst performers compared to other markets.
6. Even European markets are up at least 1%.
7. But no complaints as VIX fell and option sellers made good money.
8. FIIs have once again sold heavily for Rs 492.45 crores.
9. However DIIs have bought more than what FIIs have sold and they have bought for Rs 783.02 crores.
10. In the last few months the significance of FIIs is going down.
11. They buy when markets are high and they sell when markets are low. I do not know how they make money.
12. There are only 6 more trading sessions for this expiry. So the time value will work in favour of option sellers.
13. On August 29, Nifty August expired around 7900 and Bank Nifty August expired around 17200.
14. After three months it looks like it the same story, we have six more trading sessions and Nifty is at 7840 and Bank Nifty is at 17150.
15. So only momentum traders and Option sellers have made money.
16. It looks like December is also going to be the same.
17. I have Put options at 7600, 7500 and 7400, Call options at 7900, 8100 and 8200.
18. I have Bank Nifty Put options at 16200, 16000, 15500 and Call options at 17800, 18000, 18200.
19. Let us see how the remaining 6 days goes.
20. I expect Nifty to consolidate with positive bias for next three days.