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Post Market Report, February 9, 2016

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February 09, 2016
2 comments
February 9, 2016
Time: 8 pm

Post Market Report:


  1. Markets all over the world are in absolute panic mode.
  2. Japan's Nikkei fell by 5.5% today.
  3. European markets are falling freely after initial volatility.
  4. US futures are pointing to another sell off for third day in a row.
  5. Today IT stocks and PSU Banking stocks led the fall in our markets.
  6. Half of the fall was by 4 IT stocks, TCS, Infosys, HCL Tech and Tech Mahindra.
  7. Tomorrow once again our markets will be in absolute panic.
  8. SGX Nifty is already trading below 7250, the 52 week low for Nifty. Right now, it is trading at 7245.
  9. Bad corporate results and fall in crude prices are responsible for world markets fall.
  10. Fear of European Banks not doing well is another reason.
  11. Just three days, everything seems to be collapsing.
  12. The main problem for our markets coming from the fact that both FIIs and DIIs have sold in Cash market today.
  13. FIIs have sold for Rs 681 crores and DIIs have sold for Rs 174 crores in Cash market today.
  14. There is also another news that says that retail inflow to mutual funds is at 20 month low in January.
  15. January was a high volatile month and hence that was expected.
  16. So far whenever FIIs have sold, DIIs have supported the markets.
  17. Now people may think that DIIs may not be able to support the market.
  18. That is when the short sellers will go short aggressively.
  19. Though markets did not do well last year, mid cap stocks did well, those who have chosen good quality mid cap stocks were rewarded.
  20. This year is a year of total wealth destruction.
  21. Everything is falling, even the out performers of last two years like Pharma, Private Sector Banks and Auto Ancillaries.
  22. Highest open interest among Puts has shifted from 7400 to 7200.
  23. But Nifty 7600 Call has the highest open interest among Calls.
  24. Things may change if there is any recovery in US markets towards the end of the day. 
  25. Markets bottom is not far from here and one final leg of capitulation is due.



Written By

Options Trader and Trainer

Comments

  1. greatearth9 February 2016 at 23:35

    Where you are expecting market bottom sir?
    Or like 8 years cycle from 2008 to 2016 market will go to extreme down. What is the chance for that sir?

    ReplyDelete
    Replies
    1. P R Sundar10 February 2016 at 07:39

      Markets will be highly volatile. There is no point in predicting market bottom. You have to face the market on day to day basis. I predicted stable market, even talked of 7800 in Nifty, just few days before as China markets closed, but went wrong totally.

      But 8 year cycle , in my opinion, will not work. Everyone talk of 8 year cycle, but forget that in all previous cycles, markets shot up and then only crashed. This time none of the markets in the world went up.

      On the contrary, this is a 100 year cycle that is playing out. In the last century it was Great depression in 1929 and markets took nearly 25 years to recover in US. Now Great Recession in 2008, we are still facing this problem'side effects.

      Delete

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