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Post Market Report, January 12, 2016

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January 12, 2016
2 comments
January 12, 2016
Time: 8.45 pm

Post Market Report:


  1. I decided not to write the market reports from January 1, 2016.
  2. But I thought of writing as and when the market movements are abnormal.
  3. But the markets are moving abnormally almost every day.
  4. So I ended up writing the reports almost every day.
  5. As I stated earlier, markets fell and it was both intraday and closing 52 week lows for Nifty today.
  6. Out of 12 PSU Banks which form the PSU Bank Nifty, 11 are trading closer to 52 week low and 9 hit the fresh 52 week low today.
  7. Among the Private Sector Banks, Axis Bank, ICICI Bank and Federal Bank hit fresh 52 week low today.
  8. TCS hit 52 week low ahead of the results.
  9. Dr Reddy and Idea are the other stocks which hit fresh 52 week low.
  10. Both Federal Bank and IndusInd Bank fell after the results.
  11. I said yesterday that if the results are good shares will not rise, if the results are bad, shares will fall drastically.
  12. IndusInd Bank came out with good set of results, still shares fell 3% and Federal Bank came with bad results and shares fell by about 8%.
  13. TCS declared not so good results after the market hours.
  14. IIP data came at minus 3.2, the worst figure since October 2011.
  15. Inflation was also bad at 5.61.
  16. So what is driving the markets?
  17. It is the fear of FII selling, particularly Gulf countries Sovereign Wealth Funds as Crude keeps falling.
  18. Crude hit a fresh 12 year low today.
  19. FIIs have sold for more than 500 crores today in Cash market.
  20. Our markets under performed and closed lower despite strong European markets.
  21. The only hope for tomorrow is the good global cues.
  22. Due to good global cues if markets rise, whether the rise will sustain or will be used as a selling opportunity?
  23. That is a billion dollar question now.
  24. As of now SGX Nifty is trading around 7555.
  25. Surprisingly Nifty 7500 Put has the highest open interest.



Written By

Options Trader and Trainer

Comments

  1. Unknown13 January 2016 at 00:10

    Sir, your pointers help us in analysing the market from different angles. I am new to stock market and have learnt a lot by just following your blogs. So I would request you to write these pointers daily irrespective of the fact that it behaves abnormally or not.
    Why did Indusind Bank fall even after such good results? Is it because all the PSU banks are falling?

    ReplyDelete
    Replies
    1. P R Sundar13 January 2016 at 08:48

      Hi,
      Results day movement is very difficult to predict. Company may declare good results yet shares may fall. That may be due to huge long positions created expecting good results and consequent profit booking by long people. A company may declare bad results yet the shares may rise. That may be due to the reason that by expecting bd results people would have short sold in F&O and shares may rise by short covering. So we have to write of the results day volatility. When almost all banks are trading closer to 52 week low, HDFC Bank, IndusInd Bank and Kotak Bank are the only three banks which are trading closer to 52 week high. So it is a good share.

      Delete

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