There was nothing in the air nor in the charts that gave a clue of the hard sell that began late afternoon and later spread panic. Every pertinent guage was on the side of winning, be it technical, fundamental, financial or economical, whether international or national.
The furious turnaround is just going to remain one of those mysteries, or quirks of the market and market operators. And opinions will be apleanty.
If I may sneak in mine, tracking the Nifty close all day, yes there was selling pressure once 2727 was charged but not taken, and several charges followed in a choppy kind of spell where the steam ran out each time around 2724. So it was not going to be an easy day for progress beyond 2720s, yet there was no call for a panic sellout either. My conclusion is of some operator activity selling heavily in index and derivative counters, seeking an opportunity at the lack of buying support at higher levels made visible by the volatility and choppiness at those levels. Panic, which is a function of memory and fear combined, would set in easily.
The question now is where to from here.
It's impossible to say.
The generally accepted cautious comments from the analysists is that this 'could' be the start of a corrective phase.
Maybe not, looking at the numbers, and I'll stick my neck out here and say, yes a mild pullback perhaps but no deep cuts yet, as of this morning. I'm daring to stick my neck out as I'm amongst my own here at the forum and know I'd be pardoned a mistake. We're learning, right? Then why fear mistakes!
2652 close is at a mark of strength, with 2643 and 2634 close behind. These are positions of good support.
If things go wrong, we'll look for deeper levels.
To the up it's important to take 2661-2679-2688, and we'll look for higher levels if we get there.