It has been a horrendous day of trade and much of the good feeling of last week has been punctured I imagine for traders after today’s session. Volumes have not been great.
So, there is no huge participation. But there are clear signs of shorting at higher levels, clear signs of unwinding of positions built over the last one week on the bullish side and of course big hammering in largecap names particularly in the financial and IT space.
The result: we are down to 4,750. 4,950 or thereabouts is where we closed on Friday.
So, we have lost 200 Nifty points from there and the Sensex a staggering 700 points in one session.
It has been a very dismal start to this week’s trading. Largecaps have borne the brunt of the selling pressure today, more than smallcaps and midcaps.
It’s been a combination of negatives that have led the market down today and there were too many of them, corporate profits hit by issues, inflation fears, global problems, all of them have come together and that’s sort of punctured a good news or a good sentiment which was building up after Friday’s closing so we are not back to square one but I don’t think very far from that yet.
So let’s see what happens in the next one hour of trade and whether we can salvage some lost ground which would give the traders something to play around with tomorrow because the way global markets are shaping up, particularly the Europe and the US futures, it looks like there is at least a possibility of a little bit of a damage tomorrow morning as well.
So things are not comfortable, yes the people who have gone short today in intra-day trade might choose to take some profits over at the end of the session, but I doubt if a lot of longs would be built because there is a lingering suspicion and fear that tomorrow things might not be great from the global space either.
Thats at best a guess now, or even so, I don’t think the conviction is there.
We have made a couple of attempts to get back above that 4750 into the 4800s kind of mark in the last few minutes, but those are simply getting sold into, so for the day, the bulls have probably got a loosing battle on their hands and the bears are getting stronger.
Comments
0 comment