Nifty Future Declines On Bear Raid !
It seems that the season of scams is here to stay. On Wednesday too, there were reports about new CBI raids related to the ongoing 2G scam investigations. It seems that bears also have made it a habit to raid the Dalal Street on all days some CBI raids take place. It also seems that the market is more susceptible to bad news now a days, may be because of the extended valuations and the questionable governance standards employed by many a corporates.
On Wednesday, Nifty futures opened at 5951, just 7 points below the previous day's last traded price. Immediately after the open, it sold off to trade below the reference level of 5940 and almost reached the lower reference level at 5900. Since the contract sold off without trading at the previous close or the last traded price, a recovery ensued by around the 11.00 AM mark. However, the recovery failed after reaching to a high of 5955, thereby leaving very small subtle gap between the day's high and the previous close. Regular readers of this update might be familiar with this kind of subtle gaps which at some times indicate further weakness in the markets. However, such gaps may not have much predictive ability in range bound markets. Trading remained range bound in the 5900 to 5940 area till around the 1.30 PM mark. However, when European markets too went in to the negative territory, Nifty futures too broke the 5900 mark to record a low of 5873 in the afternoon session. However, the close was at 5896.
Nifty Futures - Intra-day Chart
