Re: Todays Nifty Blast
Hi Alok.
May be that is the reason for the rise or may be some news on bank mergers and consolidation etc., or may be some other news. But, when do I get to know about that information? where do I stand in the information chain? what is the latency of the new flow?
By the time I receive the information, process it and take action, the price might have already reached it's peak. where as the chart in front of me indication of the likely move slightly in advance.
If you see today's charts of various scrips, the price action was indicated at 13.45, where as in BNF, RIL etc., the reversal was indicated at 13.15 only by way of BB piercing and reversal.(Here I am talking of 15 min.charts)
May be I am wrong, but, a day trader will not last long if he depends on news flows to take action.
cheers.
I bet everyone enjoyed today's Nifty blast & 30 odd minutes of Casino play just before 2 O'Clock but does any know the reason for this blast ? It has nothing to do with technicals or DOW or FTSE etc. Govt has clarified that it will not discourge investment through PE Notes thus putting this contrevorsy to rest. There is about 1.24 Lakh crore Rs. PE notes in Indian market presently & now more waiting to pour in after this clarification. So the blast was Liquidity driven in anticipation.
Cheers !!!:clap: