It's been a terrible day for global financial markets, no redemption anywhere. Asia has collapsed, Europe is looking extremely weak as we speak and the Nifty is down almost 5%, so the Sensex down below 15,000, the Nifty well below that 4600 mark, and has not gone back above that level through the trading day. Midcap have taken it on the Chin, 5.5% down the midcap index, thee breadth is horrible, volumes are poor, and largecap names like HDFC, ICICI Bank, Reliance have cracked quite a bit which is why the Nifty and Sensex are not able to claw back convincingly. It's a terrible day for trade, but it's been coming for the last many sessions.
Q: It's been a tight bind the whole day and there just hasn't bee any good news through today in the trade?
A: Nor was expected but the market's inability to bounce back above even modest levels, we started the day at around 15,000 marks, fell below it, and I don't think we have been able to get our head even above that 15,000 mark once during the course of the day. Every small 20-30 point up move in the Nifty is getting sold into so it almost appears that people want a good point to go short on the market, they have no intention of going long, that's from a trading perspective, but even if you look at the Nifty futures, the discount is not very large, so I don't think it's a futures problem that we are trading at. A market falls 4.5%-5% with just a discount on the Nifty; you know that there is a lot of delivery based selling and a complete lack of buying which is leading prices down, rather than aggressive shorting. Sure traders are shorter than long at this time but I don't think that's the primary driving force for the stock going downwards today, there is some delivery based liquidation which must be happening and complete absence of buying but today the way the broader market has cracked and the individual stocks have cracked 30%-40% and the way some of the leaders have fallen is extremely disconcerting and its not showing you that the bottom is here at east yet.
Source: Moneycontrol.com
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