Today was one of the most amazing days in the Markets with both the volumes and price momentum happening a day before the Expiry of the current series. The markets had a Quiet start with the Indices moving in narrow range of 20 points on the both the Positive and negative Territory showing a state of confusion and lack of direction on either side of the rally.
However the S&P announcement on the likely hood of Downgrading the Indian Sovereign Ratings in future if adequate Policy measures are not taken and implemented set the trigger for the downfall due to which the Indices tanked by nearly 60 points in just 15 minutes creating widespread disbelief and sell-off.
Though the Finance Ministry and FM got into the Damage Control mode stating that the Economy was in control and the downgrade would not go through the damage had already been done. Most of the Analysts also started pointing out that the news of downgrade was already factored in and not a cause to be worried about. Due to which some recovery on the Indices did occur and the indices managed to close again near the psychological level of 5200 yet again.
Now it remains to be watched tomorrow on Expiry as to the further direction of the markets which have largely remained range bound for the entire series and has been the longest range bound series in the last 3 years.
With that the wait for the course of the Indices as to bullish or bearish and also whether 4800 levels or 5600 levels would also be answered. Hoping that the wait would be fruitful soon ……….
(Inputs: Mr. Hemanth V, Faculty TA, Stock Market Institute, Bangalore)