Saturday, October 06, 2012

Nifty "Freak Trade"!

Well the freak trade low does not concern me. But something else does. 
Suppose the institutional order was wrongly punched in "price" and not in order type i.e. "buy or sell" or "quantity". 
It means anyhow the "institutional client" was going to exit the markets with much more than 650 crores (since the trade amount is decided by the freak trade rates instead of prevailing market rates, which are almost double that of the freak trade rates). 
Now that gives serious let in on what the "big money" is doing in this raring bull run, "getting out". I think we should at least be alert to the possibility of markets staging a turnaround at these levels. For going short we need more confirmation, but it wont hurt to start booking some profits at these levels, or tighten your stop losses.
Reforms mean we messed up in the first place, or late to the party. I don't think there is much anyone can do in such times of underlying economic turmoil. I wouldn't bank on these announcements much more than finding good opportunities to liquidate my holdings.

Caveat: The ideas expressed above are my own, and I may be wrong about all of it. Please exercise your own judgement or take the opinion of experts (I certainly am not one, and don't want to be!). Also in trading matters please follow your own trading systems, use above information if you find it useful!


  1. Hi aniruddha,
    In your previous nifty update you mentioned that if nifty reverses from the 5770 - 5840 zone it could see a severe fall towards 4700+/- ....does that look probable now?? what will be an early signal to confirm such a scenario?? and could u explain your rationale for such a count a little in detail?

    1. Will get to it asap. May be a little busy today. But soon!

    2. Here is the latest update for you.



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