The carnage continues and the distressed
market is in no mood to spare the market participants caught on the wrong foot.
But, historically it’s proven, this is how market functions as it always tries
to choke traders/investors up with the velocity of which it moves. During the
week, last three days have been a complete nosedive for nifty, which
consolidated in a range last week. In the course of the action, the index went
on to breach all major supports one after another to eventually register the
biggest weekly loss after February 12, 2016. Trading for the week began on a
sluggish note and during the initial hours, Nifty once again nosedived to test
the 10200 mark. This was followed by a V-shaped recovery in the midst of the
session. However, once again this bounce back got sold into completely and in
the course of the action, index went on to breach its morning’s low.
Fortunately for us, the damage did not increase from there and in fact, we saw
yet another bout of strong buying towards the fag end to conclude on a positive
note. On Monday nifty future closed
at 10379. On Tuesday markets had a positive opening with a marginal
upside gap as indicated by the SGX Nifty. However, index failed to sustain at
higher levels and hence, the early morning lead was merely a formality. During
the day index made various attempts to give some bounce back but there every
attempt got sold into and eventually index closed with nearly half a percent
cut. Nifty future closed at 10314 on Tuesday.
On Wednesday, our markets opened with a decent upside gap despite mixed global
cues and in fact, the momentum got accelerated right from the word go.
Subsequently, a sustained buying was being witnessed throughout the session to
eventually conclude the session with whopping gains over one and half a percent.
Nifty future closed at 10324 on Wednesday. After Wednesday’s smart relief
rally, no one would have expected such kind of terrible start. But, it’s beyond
anyone’s control and this time, the global concerns spooked the market
participants. At the close, things certainly do not see horrifying as the index
managed to hold its key levels of 10200, which is an indication that probably
the sellers have exhausted at least for a while. But, fortunately for us, there
was no additional pain seen after a massive gap down. In fact, we did see our
markets trying to find their feet throughout the day and the damage was not as big
as it looked in the morning & nifty future closed the days at 10252. On
Friday nifty posted its biggest intra-day percentage gain in over two years as
market sentiment was lifted by a rebound in the rupee, easing crude oil
prices and recovery in the global markets as well & closed at 10485 up by
233.