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

June 16, 2016
Time: 7.45 pm

Post Market Report:

1. Our markets opened in line with SGX Nifty but fell quickly.
2. Media people were highlighting ICICI Bank shares fall, but actually today ICICI Bank turned ex-dividend and fell by Rs 5 just because of Dividend.
3. No stimulus from Bank of Japan also dented the sentiment.
4. There was a news report that Nigeria may devalue its currency.
5. Bharti Infratel has business interests in Nigeria, so that was the top loser in Nifty.
6. Bajaj Auto sells bikes in Nigeria, so that also came under severe selling pressure.
7. Maruti fell as Yen appreciated against major currencies.
8. In the morning except GAIL all the remaining 50 stocks were in Red.
9. I remember last time in April, when everyone was focusing on Fed, BoJ policy brought Nifty down by 150 points.
10. Today also the same, Nifty fell 120 points intraday.
11. But later recovered due to short covering at the lower levels.
12. Nifty closed at 8070 in May expiry and it is testing that level again and again.
13. Last month Nifty was highly volatile between 7700 and 8000.
14. This time, it seems that Nifty will be highly volatile between 8070 and 8300.
15. FIIs have sold for Rs 156.75 crores in Cash market while DIIs have sold for Rs 163 crores.
16. FIIs have indulged in selling options in huge quantities.
17. Europe opened lower and traded about half a percent lower.
18. Now US markets are open for trading and trading significantly lower.
19. US markets are trading lower for 6th day in a row.
20. Europe fell more after US markets open.
21. European banks are trading at 4 year low and European markets are trading at 4 months low.
22. Japan has fallen by more than 10% this month.
23. Another opinion poll in UK says that 53% of the people support 'Brexit', so markets are all falling after this news.
24. Nifty is likely to move violently between 8070 and 8300 as we have good local cues and bad global cues.
25. Before Brexit, Nifty is not likely to break above 8300.
26. But it may break below 8070.
27. Nifty 8000 Put option has the highest open interest among Puts and Nifty 8300 Call option has the highest open interest among Call options.
28. That suggests the range of 8000-8300 until Brexit issue becomes clear.
29. I am slowly reducing my long positions and plan to reduce as much as possibly by next Thursday.
30. I do not mind paying more money to buy the same shares once Brexit issue is clear.