Post Market Report, November 18, 2015 | Stocks and Commodities

November 18, 2015
Time: 7.30 pm

Post Market Report:

1. Yesterday US markets fell as there was a news that German Netherlands football match was cancelled due to bomb threat.
2. Today afternoon, police raided a place where the terrorist were hiding in France.
3. One of the suspects, a lady with suicide bomb vest, blew herself.
4. There were 7 explosions.
5. When this news broke out, our markets fell.
6. I have observed a number of times, the week before the expiry week, either Thursday or Friday markets fall drastically.
7. This time it has happened one day earlier.
8. There are a number of reasons for that.
9. First, the India VIX was very low and hence option traders decide to square up the positions.
10. Second, tonight Fed minutes will be released and that added to the uncertainty.
11. Third, bomb scare in German and police raid in France.
12. Fourth, huge FII selling despite the market up move in the last few days.
13. Fifth, there was a considerable up move in PSU Banks which came under selling pressure due to profit booking.
14. But the fall was, in my opinion, is a over reaction.
15. Nifty future and Bank Nifty future both closed at a discount to their cash market prices.
16. Despite such a huge fall, open interest at 7700 Put did not go down.
17. In fact 7700 Put added 4 lakh shares in the open interest.
18. Now Europe is also recovering and US futures are marginally positive.
19. So markets are likely to stabilise around 7700.
20. But that also depends on US Fed minutes and US markets closing.