Post Market Report, January 21, 2016 | Stocks and Commodities

January 21, 2016
Time: 7.45 pm

Post Market Report:

1. Another huge volatile trading today.
2. Bank Nifty was up by 450 points in the morning and gave up entire gains in the afternoon and then started going up and down.
3. Nifty future crossed 7400 in the first 5 minutes and threatened to break yesterday's low in the afternoon.
4. Japan's Nikkei was up by 400 points in the morning but closed 400 points lower at the end.
5. Same story for Hong Kong.
6. Markets are paying too much attention to crude prices.
7. Only Axis Bank saved the day by shooting up by 6%.
8. That is why Nifty closed lower but Bank Nifty closed significantly higher.
9. FIIs have sold for Rs 1747crores in Cash market, highest figure in this series.
10. DIIs have bought for Rs 1268 crores.
11. There are only 4 more trading sessions for this expiry, but option premiums are just too high.
12. Nifty 7000 Put option is trading at Rs 15, for the buyer to make profit, Nifty will have to fall by more than 75 points everyday for the next four days.
13. This premium works out to be 6% return for the option sellers.
14. Even Nifty 6800 Put option trades at Rs 5.
15. Surprisingly Nifty 7300 Put option has the highest open interest among Puts.
16. Among Calls, Nifty 7500 Call option has the highest open interest.
17. So Nifty is expected to expire between 7200 and 7600.
18. Europe is trading in Green and US futures are marginally higher.
19. But this is not due to Crude oil prices but due to ECB.
20. So we have to see how US markets trade and close at the end of the day.
21. High volatility may continue for next few days but premiums may fall as there are only few more trading sessions.