Friday, July 10, 2009

Unexpected last 40 minutes sell off

Opening with a gain of 29 points, till 13.30 Nifty today (10-7-09) moved in the range 4070 - 4110. After that it moved up to 4130 by 14.14, stayed there for a few minutes and slowly started to move down and by 14.50 reached at 4092. Thereafter market saw a basket sell off which pushed Nifty down to 3977 by 15.15 ie. 115 points fall just within 25 minutes. Movement of Nifty up to 14.50 did not gave any indication of a large scale fall and there was no reason that can be attributed to it. It seems FIIs or some other large scale institution had sold Nifty futures, Call options (OI addition of 8.4 lacs in 4100 call and 4.3 lacs in 4000 call seen) and thereafter sold equities heavily to to bring down the market. Media can say "profit booking" dragged Nifty down; but, the last hour large scale selling does not seems to be a normal profit booking. Therefore, indications of up moves may go wrong in such situations as of today.

3 comments:

riteshanan said...

nandi..what are your guidelines for the next week ..will we see an upmove above the level of 4200 in upcoming days...or is it a clear sign of market falling to 3600 level

Nandi said...

Dear Riteshanan,
Nandi is expecting a bounce back to 4232 level during the next week. At the same time Nifty is following same movements as of last year. Nandi will say Nifty singing same raga as of last year. There for a fall to 3800 levels cannot be ruled out during first three days.

riteshanan said...

thanks nandi as always i m very grateful to you.....have been following ur blogs constantly for lst 4 months , i m holding lngs right now....shld i exit them on monday ...and go for shorts ....and then agin be bullish frm wendnesday...or hold on the longs, on friday the panic selling and breakin of the shadjam level was a depressive movement.