Post Market Report, February 12, 2016 | Stocks and Commodities

February 12, 2016
Time: 7.45 pm

Post Market Report:

1. I could not write "Pre Market Report" today morning due to some personal work.
2. Markets were highly volatile today also.
3. But closing was disappointing.
4. From Monday to Thursday, Nifty fell 500 points but on Friday it did not close even 5 points higher.
5. Though large caps closed almost flat, many mid cap stocks fell drastically.
6. Quality mid caps like Voltas fell more than 30% in 5 days.
7. Volatility is so high, traders would have lost on both long and short sides.
8. Sun Pharma was up by 40 rupees and fell equally within 15 minutes.
9. Auro Pharma started from 640 fell to 600 and then shot up to 660.
10. Volta started from 236, fell to 211, then shot up to 231.
11. 20% to 30% swing in just one trading session, that was the kind of volatility.
12. Global markets are recovering but India has not recovered.
13. This is the worst weekly fall after Lehman Brother's collapse in 2008.
14. Markets seems to in Capitulation mode.
15. So the downside will be limited from here.
16. FII selling has slowed down today, they have sold for Rs 398 crores.
17. DIIs have bought for Rs 545 crores.
18. There is a strong rumor floating around that in the budget there will be capital gains tax.
19. If there is any substance in this news, then it is going to be very bad for markets.
20. So we can expect much more volatility during the budget time.
21. This may be one reason why there is no pre budget rally.
22. Nifty going down to 6500 and below is possible if there is any capital gains tax.
23. FII selling has come down, DII buying is much more than FII selling, global markets are recovering, yet SGX Nifty is trading around 7000. 
24. IIP data came today after market hours which was in line with expectation.
25. But CPI inflation was slightly higher than expected.
26. But all these are irrelevant now.
27. China markets are expected to open about 5% lower on Monday morning, so we have to see how US markets close today and how Asian markets will be reacting to China's fall on Monday.
28. So market volatility is here to stay for next two to three weeks until budget is over.