Post Market Report, January 15, 2016 | Stocks and Commodities

January 15, 2016
Time: 6.30 pm

Post Market Report:

1. Another disappointing day of trade.
2. Though markets were highly volatile in the last two days, Nifty managed to close above 7500.
3. But today for the first time in the last one year, Nifty closed below 7500.
4. Once again the same set of stocks came under severe selling pressure.
5. PSU Banks, Axis Bank, ICICI Bank, L&T, Bhel, Idea, ACC etc all hit fresh 52 week low.
6. PSU banks are the worst performers, after hitting fresh 52 week lows almost everyday for the last few days, they all fell more than 5% today.
7. I mentioned yesterday that markets will make sharp move today afternoon either side.
8. In the morning everything was good, US markets were up, Asian markets were mixed.
9. But in the afternoon, China markets fell and closed more than 3% down and today China closed more than 20% down from December high.
10. In less than 2 months, China fell more than 20%.
11. Then Europe also started trading lower, US futures were down sharply.
12. These negative things along with huge FII selling brought down the markets effortlessly in the late afternoon trade.
13. It is only Reliance and Infosys, two major index heavy weights, saving the markets from major crackdown.
14. Bank Nifty has fallen from 17200 to 15200 in two weeks.
15. This week alone PSU bank index fell more than 12%.
16. FIIs have sold for Rs 1124 crores in Cash Market while FIIs have bought for Rs 689 crores.
17. That is one major reason for markets break down. In the last few days DIIs matched FII selling but today DIIs have bought much less than what FIIs have sold.
18. Markets are in absolute panic, many stocks falling more than 10% in F&O wiping out entire capital for traders.
19. Generally markets bottom out after such panic moves.
20. Let us see where the markets bottom out.