Post Market Report, November 3, 2015 | Stocks and Commodities

November 3, 2015
Time: 6.15 pm

Post Market Report:

1. Markets closed in Green after 6 days of Red.
2. But in the last 6 days, Nifty fell nearly 300 points but the recovery was very feeble.
3. We can say it is 'doji' pattern, means almost flat closing and markets are indecisive.
4. Morning gains due to global cues wiped out in the afternoon.
5. Europe, though opened marginally positive, quickly turned negative.
6. Though VIX fell slightly in the morning, it was up at the closing.
7. No news, no trend, it is just some shares up and some shares down.
8. In the morning I mentioned that it will be a consolidation market.
9. It will be like this only for the next two days.
10. But the way the VIX is behaving, markets are likely to make big moves on Friday.
11. VIX is so high Nifty December 6800 Put is trading very actively and also 9000 Call.
12. It is a range of 2200 points which is nearly 25%. The premiums are unreasonably high. 6800 Put is trading around Rs 18.
13. 3 to 4% move on either side is not ruled out on Friday.
14. But the way markets are moving, is also seems that markets are pricing in the NDA loss in Bihar, so even if NDA looses, the fall may not be much, may be 2%.
15. But in case if NDA wins, the rise can be about 4 to 5% in two days, i.e. on Friday and Monday.
16. It is not only Bihar election, PSU Banks results will also weigh on the markets on Friday as SBI, PNB, BOB come out with results.
17. So expect volatile, range bound trade tomorrow and day after tomorrow and big moves on Friday.