The week gone by was volatile, super volatile and caused heartburn for the weak hearted. For the records the SENSEX gained 20.86 points while NIFTY was up 1.10 points. Within the week markets saw the SENSEX lose 640 points and gain 661 points making a total of 1301 points. The daily average becomes 260 points. The NIFTY lost 195 points and gained 196 points making a total of 391 points and a daily average of 76 points. This extreme volatility is to be taken as a sign of nervousness or that positions have increased and the market is vulnerable.
December futures expire on Wednesday as Thursday is a holiday for Christmas. The current level of NIFTY is lower by 269 points or 3.17% compared to the previous month. This is probably the first time during the year when we have a lower NIFTY with three days to expire. Moving 270 points or on an average 90 points for three days is a tall order even for bulls who have had a great 2014 so far.
FII’s have been sellers during the week and since the 9th of December have been sellers on every day. Currently month to date their net purchases are a mere Rs 300 crs and this could be on account of profit taking at the fag end of the year. The rupee is also under pressure and lost 1 rupee to close at r 63.29 to the dollar.
Parliament’s winter session ends on Tuesday and the same day election results to the assemblies of Jharkhand and J&K would be announced. Exit polls predict a change of government in both states with J&K unlikely to return a government with mandate.
The dastardly act of killing innocent school children has shaken the world and increased its resolve to rid the world of terrorism. The event happening in the premises of a school run by the Pakistani Army has shaken them as well. They have resolved to get to the terrorists who committed this act. If this resolve remains, one can be sure that quite a few terrorists are likely to lose their lives. One and all must condemn this horrific act. Even trading sessions to go before 2014 comes to an end. So far it has been a great year for equities and let us hope that the coming year is as great if not better.
Markets have a mere