Post Market Report, February 16, 2016 | Stocks and Commodities

February 16, 2016
Time: 9.45 pm

Post Market Report:

1. A disappointing day of trade.
2. Yesterday itself we got some clue from the FII selling figure and the kind of shares which were up yesterday.
3. Though we started very well, markets fell quickly.
4. Then came the comments from SBI Chairperson that NPA will rise in the next quarter.
5. So SBI came under severe selling pressure, bringing other PSU Banks also down.
6. After some time, there was another news that Supreme Court sent a notice to RBI Governor regarding the people who defaulted more than Rs 500 crores of loan in the last 5 years.
7. Then the selling accelerated.
8. Europe though opened positively did not sustain the gains.
9. Along with all these factors, aggressive selling by FIIs brought down the markets quickly.
10. More than half of the gain made yesterday was lost today.
11. Banks came under severe selling pressure due to SBI news.
12. ITC, ICICI Bank, SBI, Tata Motors, L&T contributed to nearly 50% of the fall.
13. Reliance, Infosys and Sun Pharma contributed another 20 points to Nifty fall.
14. FIIs have sold for Rs 964 crores, another heavy selling.
15. DIIs have bought for Rs 591 crores.
16. Markets are not going to bottom out until the FII selling subsides.
17. FIIs are selling despite such a good global cues, that is a very disturbing factor.
18. But by looking at the quality of the shares that are being sold, bluest of blue chips are being sold, the bottom is not far from here.
19. When all the good quality shares come under severe selling pressure, that will be the last leg of the selling.
20. Another big negative that we are facing is the Parliament session.
21. Past history shows that whenever Parliament session is on, markets did not do well.
22. That is because, opposition parties blocking the Parliament, key bills are not passed, etc.
23. So we are not looking at any meaningful recovery until the end of this expiry.
24. US markets are also not sustaining the momentum, today morning Dow futures were up nearly 300 points but now trading with a gain of just 50 points.
25. Crude prices also started falling as there was no production cut announced at OPEC meeting.
26. Selling will aggravate if Nifty breaks 7000, which is psychological level.
27. We are just 50 points away from that level.
28. But we have another 7 trading sessions for the expiry.