Post Market Report, January 18, 2016 | Stocks and Commodities

January 18, 2016
Time: 9.30 pm

Post Market Report:

1. As expected, markets were highly volatile.
2. There was a swing of more than 1000 points in Bank Nifty.
3. Markets were looking OK until afternoon and the selling pressure came at 2 pm and the markets were broken down.
4. The big difference today is that all the very strong shares started falling.
5. Reliance, Infosys, Jet Airways, Nilkamal are some examples.
6. PSU Bank index recovered by more than 4% from intraday low in the morning but by the end of the day gave up all the gains.
7. IDBI Bank, the only bank which was much higher than 52 week due to privatisation talk, fell nearly 10% once again and it is just Rs 3 away from 52 week low.
8. FIIs have once again sold for more than Rs 1000 crore today.
9. But DIIs have also bought for more than Rs 1000 crores.
10. All key indices, Nifty, Sensex, Bank Nifty, ended at fresh 52 week closing low.
11. Even after such a big fall and commotion, there is no news of LIC stepping in.
12. Until LIC steps in, our markets are not likely to bottom out.
13. Today US markets are closed.
14. So for one day, there will be no negative global cues due to US.
15. India VIX closed above 20 for the first time.
16. Nifty 7500 Put shed 9.32 lakh shares in the open interest and 9.33 lakh shares added in the open interest of 7200.
17. So the next support for the market is at 7200.
18. Nifty 7400 Call and 7500 Call added 12.8 lakh shares in the open interest which is a very bearish sign.
19. Now Nifty is likely to find huge resistance at 7480, assuming most of the 7400 Calls are written at Rs 80.
20. So the expiry will be between 7200 and 7500, things may change if there is any positive trigger.