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

February 15, 2016
Time: 7.30

Post Market Report:

1. Finally the short covering rally came.
2. Nifty was up by 200 points intraday.
3. But the FII selling was visible even during the trading hours.
4. FII favorites like HDFC did not rise even in this kind of market.
5. Quality stocks like HDFC, HDFC Bank, Infosys, ITC, HUL, Kotak Bank, Sun Pharma all did not even go up by 1%.
6. Heavily beaten down stocks where there is huge short positions only went up by 5% to 23%.
7. Therefore this rally will continue or not is a big question.
8. FIIs have used this short covering rally to sell heavily and they have sold for Rs 1312 crores.
9. This is really a bad news as this is the second highest selling figure this month and that is the kind of selling in such a bullish market.
10. However huge buying by DIIs helped the markets to stay higher and DIIs have bought for Rs 1987 crores, which is much higher than FII selling.
11. Bank of Baroda was up by 23% after declaring highest ever loss by an Indian Bank, from this we can see the amount of shorts in the system.
12.  European markets are higher and US markets are closed today.
13. So the markets may not make a significant move tomorrow.
14. I will not be surprised if there is any selling pressure due to huge FII selling tomorrow.
15. India VIX crashed by more than 9% and option premiums fell.
16. Metal Index and PSU Bank Index were up by more than 9%. That is purely by short covering.
17. I feel that there is no strength in our markets, it may change in the next few days if global cues continue to be good.