Post Market Report, January 14, 2016 | Stocks and Commodities

January 14, 2016
Time: 7 pm

Post Market Report:

1. As expected markets were highly volatile.
2. Yesterday the local cues were bad (IIP was bad, CPI inflation was bad, FIIs have sold heavily, etc) and global cues were good. So markets were up then fell drastically and then recovered.
3. Today the local cues were good (FIIs did not sell much, DIIs have bought heavily, Infosys declared good results, etc) but global cues were bad, so markets fell first and then recovered.
4. Nifty opened gap down by more than 100 points then shot by more than 140 points and then again fell more than 100 points.
5. At least Nifty settled slightly lower after a volatile session but Bank Nifty fell drastically even after falling more than 1400 points this month.
6. No need to say once again that 11 out of 12 PSU Bank Index stock hit fresh 52 week low.
7. IDBI fell as govt.'s decided not to privatise the bank.
8. It is the same list of stocks like Bharti, Idea, Axis Bank, ICICI Bank, ACC, etc hit fresh 52 week lows.
9. FIIs have once again sold heavily for Rs 1222 crores.
10. However DIIs have bought for Rs 1526 crores which helped the markets to recover from the lows.
11. The trend reminds 2011 when markets fell in the first two weeks of January and kept on falling though out the year. Nifty fell nearly 1500 points that year.
12. Though Nifty has already fallen 1500 points since March 2015, we can not say anything about the markets.
13. Technical people re already talking of 7200 and 6900 levels for Nifty.
14. Today markets did not fall much as Infosys alone contributed 30 points in Nifty.
15. We have to see how corporate results will be in the next few weeks.
16. If some companies declare bad results, then the down trend may continue.
17. Coming back to market internals, all strikes from 7500 to 7000 Put options added open interest.
18. Maximum open interest of more than 7 lakh shares added in 7300 Put option. This shows that people are confident that 7300 will be the floor for the markets until the end of this series.
19. At the same time there is addition of open interest from 7500 Call to 8000 Call except 7800 Call where open interest has come down.
20. As I said yesterday, only dare devils can create positions at 7200 Put and 7800 or 7850 Call.