Post Market Report, December 16, 2015 | Stocks and Commodities

December 16, 2015
Time: 7.45 am

Post Market Report:

1. I could not write 'Post Market Report' yesterday as I had to go for a function.
2. Today morning, I had Sun TV program and I could not connect to the Wifi at Sun TV studio in time to write 'Pre Market Report'
3. As I have stated earlier the recent fall was not due to Fed event. If that is the case, markets should not have recovered so much before the event.
4. The fall was due to Crude oil crash, GST bill problem, fear of higher provisioning for SDR by RBI, diesel vehicle ban etc.
5. Just ahead of Fed event most markets are up.
6. Even today, Dow futures are up.
7. More than 80 lakhs open interest is there both at 7500 Put and 8000 Call.
8. So Nifty is likely to trade between 7500 and 8000, whether it is going to be closer to 8000 or closer to 7500 depends on GST bill and reaction of global markets to Fed event.
9. Today FIIs have sold for Rs 503.22 crores and DIIs have bought for Rs 1024.03 crores.
10. But these things are immaterial as Fed event will decide the tomorrow's markets.
11. Diesel vehicle ban affected M&M shares which fell more than 5%.
12. Surprisingly Reliance has been doing very well, probably because of Reliance Jio launch is nearing.
13. So if everything goes as expected, rate hike by 25 basis points followed by Dovish comment, then tomorrow markets all over the world will be trading with positive bias.
14. Nifty is not likely to move more than 100 points either way, no matter what is the outcome of the Fed.
15. Bank Nifty has under performed Nifty in the last two weeks and if there is any short covering in Bank Nifty then Nifty can go near 8000.
16. Even if world markets rise significantly, our markets upside will be limited due to GST and other problems here.