Market Crash Globally

Scary day to start with! Haven’t seen such a day in years. US had a big crack yesterday with Dow Jones falling 1200 points on a single day, which is the biggest fall in terms of numbers in the history of Dow Jones. The CBOE volatility went up by more than 110% which is also something that I have never seen. Things look really scary with Hong Kong is down 1300 points now and Japan is down by 1200 points now. So every market is down by 4% and everyone is clueless at the ferocity with which the markets are falling. Crude is now back to 66 dollar zones and that is the only piece of good news you have.
On the domestic front, there is practically nothing that is driving the market today. The monetary policy committee will start its meeting today but I dont think any of them will make any sense. If you ask me why this correction is happening, its the technical correction. The budget fundamental in India and bond fundamental in US have simultaneously triggered a fall and after falling 5% the technicals seems to have taken over the fundamentals and the market is falling under its own weight. Now the 10% correction seems to be more or less certain to happen.

For those who are interested in company results here are the Q3 results coming today.

1. Apollo Tyres
2. Berger paints
3. Castrol India
4. Dish TV
5. Heritage foods
6. JSW energy
7. Kamat hotels
8. Lupin
9. Hero Motocorp
10. Natco pharma
11. Seimens
12. Spice Jet
13. Tata Chemicals
14. Thermax

Derivatives Action

On the derivatives front, there was some recovery that was seen yesterday in the options market as the recovery in the second half of the day started giving some scope to the investors. There were long positions taken in Nifty futures and at 3PM yesterday Nifty futures was trading at a double digit premium. The shorts slowly started disappearing and at 10600 and 10650 levels there was lot of buying that was seen. In the options market also positions started appearing on the put side. 10600 put saw 11.3 lakh shares built up and at 90 rupees premium 10510 was seen as a temporary floor at least for this series. On the call side there was shorting seen at 10700 call where 9.6 lakh contracts were shorted. The put call ratio also stabilized at 1.10 vs 1.09 seen at the beginning of the day.

What is the Nifty and Bank Nifty call for the day?

Am giving Nifty and bank Nifty call together because there is not much to differentiate the both. The global fall is triggering a 350 point gap down which is the highest every gap down in the history of Nifty. Nifty will open close to 10400 level and there are no meaningful levels to talk about except 10100 which is really scary. Bank Nifty also might open around 25300 levels and 25000 should act as a support. Nifty might take support at 10320-10350 levels and any close above 10400 should be seen as positive and if that doesnt happen we are on our way down to 10200 first and 10100 later. Bank Nifty will stop at 25000 in all probability. So wait for one more day before you get a confirmation to enter. Entering now means burning your hands as well as your hard earned money.