So what moves the markets.
At these levels, besides the earning expectations, it's news obviously.
Whether it's manipulation or not is a good point to consider.
Infy announces bonus in eye catching news. Instantly a runaway gap opening, about 250 points above previous close.
Morgan Stanley upgrades Holcim to overweight, and immediately ACC, Grasim and Gujarat Ambuja gap up and rally hard.
ZeeTV earns the BCCI contract, gaps up and rallies intantly.
These are enough to do the trick.
Move some strong Nifty counters and squeeze out the bears, and squeeze out every drop from the rally.
The game goes on.
The Friday following the last F&O expiry, this was written, and bringing it up as it's relevant here:
AMITBE said:
Not only can the big money arm-twist the Nifty, it can also hunt in packs with a great sense of timing.
Past 3 PM yesterday this was done, with several big players turning on the heat in perfect concert.
A perfect bear trap was laid, as the Nifty exactly at 2.30 PM, tested the near days low at 3379 (the real low being 3354, also the opening.).
A little before this, at 1.30 PM the Nifty had touched base at 3380 after testing around 3400. Then a feeble looking attempt was made at 3393, followed at once by a drop to 3379. Then another feeble attempt at 3387 followed by a drop to test 3378 a little before 3 PM. The highs were getting lower. An ordinary scenario on the last day of the contracts, with tugs and pulls from either side.
Then several counters began to move in concert.
I track ONGC, ITC, Bharti and Hind Lever as I hold these, and suddenly these and the Nifty of course began to move like all the meters on all the gas pumping machines at a gas station gone crazy all at once. Gallon after gallon after gallon. Pardon the Yankeeism.
In fact Hind Lever had been looking distinctly weak through the session trading below the previous close, right up till then.
The plundering took place between 3 and 3.15 PM, then at once, and as one, it turned direction.
The whys and hows of this kind of manipulation is another matter, but please, as written in a few news reports, if anyone says this was in anticipation of earnings growth, or a pre results rally, give us a break.
The earnings growth factor is not about to vanish into thin air all in fifteen minutes, so why the insane assault.
And its way too early to be a pre result rally, and the next few sessions would trash this theory Im certain.
The other day I'd posted at Agilent's thread, Exhaustion Gaps, about market manipulation which he had erroneously taken to mean scams.
This kind of manipulation is perfectly legitimate, and bodies like SEBI cannot do much about it. Hey, it's an open market and buy and sell anything goes.
And now the hard sell...from some big brokerage most likely in the derivatives.
More manipulation, as at current levels it takes someone to holler BOOOOOOO...and there'll be a crazed skedaddle (Saint!!) for the exit.
Makes big money at either end.
The market had just breached the critical support at
3469 to touch base at
3446, a downwards thrust of over a hundred points from the day's high.
Now it's important to take and stay above
3484-3485-3488-3491 to bring stablity, as the bears have tasted blood.
Supports are at
3455-3451-3446-3440-3436.
I still don't see this as the start of a biggish correction just yet.
Volatility yes, and it'll be high till the bulls make another concentrated move to regain some critical levels. They are not all that far high up.
We are still quite far from losing critical supports yet.
