Posted By : Kishore B.S
Friday was an eventful day with the NSE going into the lower circuit and trading half for 15 mins due to the sell off triggered by the Emkay Global of Rs. 650 Crore Rs.
This closure of the trading for 15 mins has brought to fore the investors protection measures initiated by the NSE which was fully blown off during the session on Friday.
Though NSE gave clarifications later yet the participants and investors have lost the confidence on the Risk management side of the NSE and the same was evident during the trading on the Fridays session. This glitch on the NSE led the indices to retract nearly 800 odd points at one point of time post which there were some whip saw trading witnessed to positive zone to again negative by 80 points.
The markets closed nearly 1% lower which was infact the first negative closing in thee last 12 sessions. Bringing the bears to the forefront to be watched out for. The technical charts are indicating that the glitch was very much required and infact waiting to happen due to the overbought levels of the indices.
It also is indicating that unless the 5700-5680 mark is not taken off the markets is likely to consolidation further and breakout on the upper side to the 5800-5840 zone sooner or later since that mark is not yet reached convincingly.
In case the lower support level of 5700-5680 is broken then the rally would fizzle out and we could witness further profit booking until the 5500 levels which would be determined and indicated by the market momentum in the next 2-3 sessions of this week.
Hence it would be advisable to wait for the directional move this week and take calls accordingly in the direction of the markets.
(Inputs Mr. Hemanth V, Faculty TA, Stock Market Institute – Bangalore)