Post Market Report, January 22, 2016 | Stocks and Commodities

January 22, 2016
Time: 9.15 pm

Post Market Report:

1. After so many days of high volatile trades, today is the first day markets traded without any volatility.
2. No wonder India VIX crashed by 9.57%.
3. I did mention in the morning that markets will normalise if VIX comes down by 10%.
4. That has exactly happened.
5. There were short covering rally in many stocks.
6. Is everything changed for bettwer?
7. Still I am not convinced, FIIs have sold for Rs 770 crores in Cash market.
8. That is not a good sign.
9. But today Crude oil shot up by 6%.
10. So going forward, there may be less selling by Gulf based Sovereign Wealth Funds.
11. However DIIs have bought for Rs 916 crores.
12. As I have mentioned in the morning, Nifty may inch towards 7500 by the end of this series.
13. Option premiums are likely to collapse as Time value as well as Volatility value will go in favour of option sellers.
14. Few days before, I did mention that one can sell Nifty 7200 Put and 7800 Call.
15. That has worked very well despite such a huge volatility.