Markets BREAKING DOWN? Post Market Report 20-May-25

0:02 [Music] [Music] Hi, this is PR Sundar. Welcome to post market report sponsored by Intel.exchange. Uh what a dramatic day. GIF Nifty indicated about 100 points gap up but from the day high we have fallen more than 300 points. The Bank Nifty was very very pathetic and Bank Nifty has fallen more than 500 points. Today morning the IT stocks were higher just because I told you US NASDAQ is higher and when IT stocks went higher

0:48 and there was some profit booking in Reliance indices and uh banking stocks I thought they were trying to manage the indices but at the end of the day uh most of the things have fallen. Now first there is a small concern here. Number one, usually in an uptrending market, uh the market should bottom out on the third day low. And so that means you know today there must be a low that low should be respected. But uh today the third straight day the markets are falling. The fall was uh really very big. Yesterday and day before yesterday the fall was not really very big. We can say

1:34 it was just a a consolidation not more than 100 point down but today both positionally as well as intraday the fall was big and one reason is that you know there was some news uh you know there is a there's a corona virus scare is coming back I think two people died in India or something like that you know but I always tell you know when some first time something happens that becomes a shock. The second time that happens is just a news. So even I was searching for that news when my friend told me I could not get the news anywhere. So I don't think that that can be a good reason. uh but

2:20 the US bond yield so that may be another issue because 30-year bond yield shot up more than 5% in US but even the US markets did not react most Asian markets were higher European markets were higher the US futures were lower but that's very very little because you remember for the last six trading sessions US markets were moving higher so therefore some slight profit booking is acceptable there but today's fall of more than 200 points more than 300 point from intraday high to low uh that was really surprising. So anyway because this has happened closer to the expiry there was

3:07 no big damage in option prices but and the open interest was already indicating yesterday I told you uh people were selling 25,000 call options aggressively uh for about a premium of about 150 and I also said that these people are expecting 25,150 as a resistance and I also said that I'm not convinced. I thought markets will go higher but on the contrary severe selling has happened and then you know those who sold 25,000 uh and higher calls yesterday they have made very decent profits. Of course if they are holding on to their position in the morning when

3:53 there was a gap up open of about 100 points. uh even now I look at the option prices and uh there were hardly any addition in put options even yesterday as well as today but there's a huge addition of call options and today even the 24700 calls are being added aggressively uh 24800 24 900 25,000 across the board uh option prements are very very lucrative and Even after 3 p.m. also uh even the 245 500 255 500 call that was about 800 points away that was trading around 10 rupees. So option prices are

4:40 very very lucrative especially for the people who are selling far out of the money options. Uh today Sensex expiry so probably uh the volatility was there because of that. uh but otherwise you know uh it is time to be a little bit cautious. Uh the story is intact so market is still long only the market is not short. Uh but there are some signs of uh cracking so it's happening but if global cues are good you know maybe after one or two days you know uh things might settle down but otherwise there may be some problem. uh as of now I still believe that uh 24,500 on the

5:28 downside and 25,200 on the upside is intact. Uh but the way HDFC Bank, ICSA bank and Reliance are performing uh that is little bit scary but at the same time the volatility index is not shooting up. So that is something very very positive. So when the market falls if the volatility index shoots up then there is something to worry. So anyway let us see tomorrow what is going to happen. Uh it all depends upon US market. So yesterday uh when I was talking the US futures were down by nearly 2%. Then after the market open shorter uh to turn into positive. Uh right now they are trading

6:15 slightly lower. So we need to wait and see accordingly question markets will react tomorrow. Right now give nifty indicating about 30 20 30 point higher only uh especially today's fall especially afternoon I think that is little bit uh overdone I think so market should stabilize and uh but I will turn a little bit bearish if today's low is broken tomorrow. I think that may not happen tomorrow. So anyway, tomorrow morning we will discuss more. Hope you enjoyed watching this video. Thank you for watching. [Music]