Good Start, Bad Closing | Post Market Report 06-Aug-24
Summary
TLDRIn the post-market report, PR Sund discusses the extreme volatility and disappointing close of the exchange markets, with Nifty and Bank Nifty experiencing significant falls from their intraday highs. He highlights the contrast with Japan's market recovery and the lack of domestic institutional support reflected in the Indian market's performance. The script also touches on the impact of FII sales, the fluctuating NASDAQ futures, and the challenges faced by traders due to market unpredictability. Sund emphasizes the importance of caution, as the market is expected to be challenging in the coming months, and the need for US market stabilization for any hope of recovery.
Takeaways
- đ Market Volatility: The script highlights the extreme volatility in the exchange markets, with significant intraday fluctuations.
- đ Recovery in Japan: Despite the Japanese market closing 10% lower the previous day, it managed to recover all losses the next day.
- đ Continued Decline in India: Indian markets continued to fall, with Nifty and Bank Nifty experiencing substantial drops from their intraday highs to lows.
- đč FII Selling Pressure: Foreign institutional investors (FII) sold about 10,000 crores in a single trading session, a stark contrast to the last 7 months' sales of only one lakh crore.
- đŒ Domestic Institutional Support: Domestic institutions invested an equivalent amount to what FII sold, but this did not reflect positively in the market's performance.
- đ Global Market Influence: The script mentions the impact of global markets, particularly the US and Europe, on the Indian market's direction.
- đ India VIX Decrease: There was a slight decrease in the India VIX, indicating a reduction in market volatility fear, but not significant enough to stabilize the market.
- đ Market Spikes and Falls: The speaker predicts that the market will not fall vertically but will experience intraday spikes followed by further declines.
- đŠ Banking Sector Struggles: The Bank Nifty, which had previously been high at 53,000, fell below 50,000, indicating a significant downturn in the banking sector.
- đ Support Level Testing: The Nifty's support level of 24,000 is being tested repeatedly, suggesting that it may eventually break if the market conditions do not improve.
- đ« Urgent Caution Needed: The speaker advises extreme caution in the market, hinting at the possibility of further declines without stabilization in the US market.
- đŁïž Potential Rate Cut Rumors: There are unconfirmed rumors of an emergency meeting to discuss interest rate cuts, which could potentially impact the market direction.
Q & A
What was the overall market trend described in the report?
-The report describes a very volatile market with a disappointing close. The Nifty fell more than 400 points from its intraday high to low, and the Bank Nifty fell even more, indicating a significant downturn in the market.
How did the Japanese market perform in comparison to the Indian market?
-The Japanese market had closed about 10% lower the previous day but managed to recover all of its losses. In contrast, the Indian market not only fell significantly the previous day but also continued to fall further on the day of the report.
What was the impact of foreign institutional sellers (FII) on the market?
-FII sold for about 10,000 crores in a single trading session, which is a stark contrast to the last 7 months where they only sold one lakh CR. This massive selling by FII seems to have had a negative impact on the market.
How did domestic institutions respond to the selling by foreign institutional sellers?
-Domestic institutions put in an equivalent amount of money to what the FII sold, but this did not reflect positively in the market's performance, neither on the way up nor down.
What was the state of the broader indices like next 50, midcap, and small cap?
-The broader indices such as next 50, midcap, and small cap all fell more significantly than the Nifty, indicating a broader market downturn beyond just the major indices.
How did the India VIX move during this period?
-The India VIX came down, but not by a significant amount, only about 8%, suggesting that market volatility was still high but not escalating drastically.
What was the situation with the banking stocks as described in the report?
-Banking stocks, particularly the Bank Nifty, were described as very weak. The Bank Nifty fell about 7% from its all-time high, which is a substantial drop compared to the overall Nifty's 4% fall.
What was the significance of the 24,000 level for the Nifty?
-The 24,000 level for the Nifty was a significant support level that was tested multiple times. The report suggests that if a support or resistance level is tested many times, it is likely to break eventually.
What was the report's stance on the market's future direction?
-The report suggests that the market is going to be challenging for the next few months and it's going to be very difficult, indicating a bearish outlook.
What was the report's advice regarding market participation?
-The report advises being very cautious in the market, implying that the current conditions are risky and require careful consideration before making any investment decisions.
Were there any rumors or reports about potential actions by financial authorities?
-There were rumors about an emergency meeting of the Federal Reserve to possibly cut interest rates, but nothing had materialized at the time of the report.
Outlines
đ Volatile Market and Disappointing Close
PR Sund discusses the highly volatile nature of the exchange markets, noting a particularly disappointing close with Nifty falling over 400 points from its intraday high to low. The bank Nifty experienced an even more significant drop, exceeding 800 points. This decline is attributed to the Japanese market's recovery of a 10% loss, which the Indian market failed to match, despite domestic institutions investing an equivalent amount to offset foreign institutional sales. The market's lack of upward reflection of this investment is highlighted, along with the broader indices' performance, which fell more significantly than Nifty. The video also mentions the reduced India VIX, suggesting some level of stabilization despite the challenges expected in the coming months.
Mindmap
Keywords
đĄVolatility
đĄIntraday High and Low
đĄBank Nifty
đĄFII (Foreign Institutional Investors)
đĄDomestic Institutions
đĄIndia VIX
đĄOpen Interest
đĄSupport and Resistance Levels
đĄStop Loss
đĄNASDAQ Future
đĄInterest Rate Cut
Highlights
Exchange markets were extremely volatile with a disappointing close.
Nifty fell more than 400 points from its intraday high to low.
Bank Nifty's drop was even more severe, exceeding 800 points from high to low.
The market's reaction was disappointing after Japan's market recovered from a 10% drop.
Intraday volatility was significantly high, reflecting market instability.
Foreign institutional investors (FII) sold assets worth 10,000 crores in a single session.
Domestic institutions invested an equivalent amount, but market performance did not reflect this.
Japanese and European markets were higher, but US markets were going down.
NASDAQ futures initially showed a significant rise but later settled lower.
Markets are expected to be challenging for the next few months.
Yesterday's market saw a large sale of call options, leading to significant stop-loss triggers today.
Banking stocks, particularly Bank Nifty, showed a significant drop.
Bank Nifty fell 7% from its all-time high, indicating a heavy weight on the market.
Open interest in call options is suspected to be very high, influencing market recovery.
Domestic institutions attempted to close the Nifty above 24,000, a significant support level.
The support level of 24,000 is being tested repeatedly, indicating potential break.
US market stabilization is crucial for the recovery of Indian markets.
Rumors of an emergency meeting to cut interest rates, but no concrete action yet.
The current market situation calls for extreme caution among investors.
Transcripts
hi this is PR Sund welcome to post
market report sponsored by delta.
exchange markets were very very volatile
but the closing was really a
disappointing
close and number one Nifty fell more
than 400 points from intraday High to
low and the bank Nifty was even worse
they fell more than 800 point from
intraday high to
low that was really disappointing
because yesterday Japan market closed
about 10% lower and today the entire
loss has been
recovered but we fell so much yesterday
but on top of which today we have fallen
again and the intraday volatility was
very very huge
yesterday FAS have sold for about 10,000
crores in fact for the last 7 months
they have sold only one lakh CR and now
in just one single trading session they
have sold 10,000 crores but of course
domestic institutions have put in the
equivalent amount of money but that is
not reflecting in the markets on the way
up also it was not reflecting so why it
has to reflect on the way down
today now though Japanese Market were
higher and Europe and us you know they
are going down and in the morning I saw
you know NASDAQ future was trading about
300 plus Point higher now it's just only
100 point plus and you know things are
not uh settling down so that's what I
would say uh usually there will be you
know Market won't fall vertically you
know there will be some intraday spikes
then again falling and that kind of
things but luckily today India vix has
come down but not by very big amount I
think India we is down only about
8% and Nifty is okay but the broader
indices next 50 midcap small cap they
all have fallen more and then intraday
fall was even
more so definitely I've been saying you
know this Market is going to be
challenging market for the next few
months
so it's not going to be easy uh it's
going to be very very difficult but you
know yesterday the market SP so much
people sell huge amount of call option
today Market shoot up 400 point 300
point and then you know all those people
stop lus got triggered then after that
market falling you know so this is how
the markets you know will be throwing
out the Traders But ultimately will
fall and you know uh today you know
banking stocks especially uh I really do
not know the bank Nifty high was
53,000 now it has broken
50,000 so Nifty is just down about 4%
but Bank Nifty is about 7% from the
respective alltime high so definitely
the bank Nifty is looking very very
weig there is no need to talk about the
open interest I'm sure you know I did
not see the open interest but I'm sure
uh 24,000
uh calls should have been written very
very
aggressively and then only in the last 5
10 minutes there was some recovery uh I
think domestic institution would have
tried that best to close the Nifty above
24,000 as I talked to you today morning
you know yesterday Nifty fell below
24,000 but closed above
24,000 today also intraday Nifty fell
below 24,000 but close above
24,000 now this support of 24,000 is
being tested many
times I always say if a resistance or
support is being tested many times then
ultimately it will
break so unless US market stabilize
unless us markets move higher you know
uh there is no hope for for our market
and that should happen
quickly but there are some report rep
you know rumors that you know there may
be an emergency meeting of f to cut the
interest rate and I don't know but
nothing is being
materialized as I told you in the
morning definitely this is time to be
very very
cautious right so otherwise I need to go
out so therefore I didn't do research
much so let me stop here the more
details I'll give you tomorrow morning
hope you enjoyed watching this video
thank you for watching e
[Music]
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