Markets STABILIZING? Post Market Report 07-Aug-24

Summary

The post-market report highlights a global market recovery following a severe selloff, with Japan's market bouncing back from a 10% drop to a 3% rise. Despite volatility, especially in India's banking sector with the Bank Nifty's significant fluctuations, the broader market indices saw a 3% surge. The Nifty held above 24,000, indicating stability, and domestic institutions supported the market against foreign selling. The video predicts a trading range of 24,000 to 25,000 and a potential stabilization, attributing the resilience to domestic buying.

Takeaways

• 📈 Global Exchange Markets are recovering after a significant selloff, with markets like Japan experiencing sharp fluctuations.
• 🗨️ The Japanese Market saw a drop of nearly 133% on Monday, followed by a 10% recovery, and then a further 3% increase on Tuesday.
• 📊 Europe and US markets are also showing signs of recovery, with US futures indicating a second day of gains.
• 🇮🇳 Indian markets have recovered but with high volatility, especially in the banking sector, with significant point gaps and fluctuations.
• 📉 Bank Nifty experienced extreme volatility, with a 600 point gap, followed by drops and rises of 300-500 points.
• 💹 The broader market indices outside of Nifty, including midcap and small cap, saw an increase of nearly 3%, outperforming Nifty's 1.25% rise.
• 📉 India VIX fell by 13.3%, indicating a decrease in market volatility from the previous trading sessions.
• 🔢 Despite intraday fluctuations, Nifty did not close below 24,000 for the past few sessions, maintaining a key support level.
• 💼 Domestic institutions have been buying, supporting the market against foreign selling pressures.
• 📊 The trading range for Nifty is expected to be between 24,000 to 25,000 for the rest of the series, based on current market conditions.
• 📉 Weekly option traders faced a challenging week due to high market volatility, but the market may stabilize moving forward.

Q & A

What is the main topic of the video script?

The main topic of the video script is the post-market report discussing the recovery of global exchange markets after a series of selloffs and the specific situation of the Indian market, including the Bank Nifty and its volatility.

What happened to the Japanese market on Monday as mentioned in the script?

The Japanese market fell nearly 3% on Monday, and then on a closing basis, it was reported as a 10% fall, which seems to be a misstatement as the percentage should be less than 100%. The script may have a typographical error here.

How did the Japanese market perform the day after the significant drop?

The Japanese market recovered significantly, shooting up by 10% the day after the drop.

What was the performance of the US markets as per the script?

The US markets were recovering, with US futures being higher for a second consecutive day.

What was the situation with the Bank Nifty on the day of the script recording?

The Bank Nifty experienced huge volatility, with a gap of 600 points, falling 500 points, then shooting up 300 points, falling again by 300 points, and finally shooting up by 200 points in the last 30 minutes.

Why was there significant volatility in the Bank Nifty on the day of the script recording?

The significant volatility in the Bank Nifty was due to its expiry on that Wednesday, which likely led to increased trading activity and thus volatility.

How did the midcap and smallcap indices perform compared to Nifty?

The midcap and smallcap indices performed better than Nifty, shooting up nearly 3%, whereas Nifty was up by only 1.25%.

What was the performance of India VIX as mentioned in the script?

India VIX fell nearly 13.3% in the last few trading sessions, indicating reduced market volatility or fear.

What is the significance of the 24,000 mark for Nifty according to the script?

The 24,000 mark is significant for Nifty as it did not close below this level in the June and July series, indicating a strong support level for the index.

What is the expected trading range for Nifty according to the speaker's view?

The speaker expects the trading range for Nifty to be between 24,000 and 25,000 for the rest of the series.

What is the speaker's prediction for the market's closing the next day?

The speaker predicts that the market will close between 24,100 and 24,500 the next day.

What does the speaker attribute the market's recovery to?

The speaker attributes the market's recovery to domestic institutions, which kept buying despite foreign institutional selling.

What was the impact on weekly option traders according to the script?

The script suggests that it was a terrible week for weekly option traders due to the extreme volatility in the market.