Tuesday, November 23, 2010
Volatility beyond expectation.
Today's(23-11-10)volatility was beyond expectation - Korean tremors shook the market.
Nifty opened at 5942 with a loss of 68 points, moved between 5937 - 5964 up to 11.30, fall of more than 100 points - up to 5825 - and full recovery, again in the range 5925 - 5950 after 14.30 and closing around the opening level at 5935 with a loss of 75 points. At 15.15 when Nifty was at 5825 Nifty was gone down more than 3%. When ever there was a fall of more than three percent, 8 out of 10 instances Nifty recovered half of it on the same day or the next day. Today it happened on the same day. Nifty range today was 5825 - 5973 where as Nifty futures range was 5822 - 5968 (for details see chart above). Volatility is likely to continue for the next two days also. Tomorrow's Agni level is at 5890.