There is no downtrend without a pullback and that's what happened today. The market recovered some ground after seven days of despair. The pullback rally lost some steam mid-session, but frontline indices managed to close with handy gains. The Nifty gained just over 30 points to close just above the 4,800 mark, while the Sensex ended the session at 16,065, up 120 points.
Truth be told, the market had gotten very oversold — both equities and the foreign exchange. Therefore, a pullback was always going to be very technical in nature. Also, the market is very close to expiry, so maybe some of the shorts might have closed out as well and booked profits.
The same set of stocks, which were beaten down most, gained today. Therefore, there was no great leadership in this “upmove” at all. So, everything that the screen is showing is suggestive of a technical respite to the one-way fall. Well, it might become more if global markets generate some positive newsflow.
Unless there is some massive global event, can’t see how markets can turn the corner quite so easily.
Truth be told, the market had gotten very oversold — both equities and the foreign exchange. Therefore, a pullback was always going to be very technical in nature. Also, the market is very close to expiry, so maybe some of the shorts might have closed out as well and booked profits.
The same set of stocks, which were beaten down most, gained today. Therefore, there was no great leadership in this “upmove” at all. So, everything that the screen is showing is suggestive of a technical respite to the one-way fall. Well, it might become more if global markets generate some positive newsflow.
Unless there is some massive global event, can’t see how markets can turn the corner quite so easily.
