The market had a weak opening going down to 18400 (down 140 points) and in Nifty 5510 (down 55 points)
and then around midday recovered to 18560 and Nifty 5580.
Towards the close the market fell back towards the lows and finished @ 5531 (down 34) and sensex down 74 @ 18460.
Banks were the worst affected - most of the Banking stocks were down around 10 - 12% in the last 3 trading sessions - SBI/YES/ICICI/BOB - and almost all other PSU banks.
May seems to be an established Bearish month - last year the Nifty fell from 5278 to 4786 during the month - a fall of nearly 500 points (sensex around 1400 points).
In the last one week Nifty is down 270 points (from 5800 to 5530) and the sensex down nearly 700 points so far.
Also in the last 2 days Silver prices fell by nearly Rs 6,000/kg.
So if the past year is any guide then the market is heading towards 17500 sensex or Nifty 5250.
Or is this year going to be any different??
My personal opinion is that crude oil prices now around $ 110 would drift down by 10% to below $ 100 in the next few weeks and this would have some favorable effect on the inflation figure for May - and the market unlikely to go much lower - as the liquidity position is still good - though the sentiments are very negative.
Would I bet on my own opinion? - very unlikely,
and then around midday recovered to 18560 and Nifty 5580.
Towards the close the market fell back towards the lows and finished @ 5531 (down 34) and sensex down 74 @ 18460.
Banks were the worst affected - most of the Banking stocks were down around 10 - 12% in the last 3 trading sessions - SBI/YES/ICICI/BOB - and almost all other PSU banks.
May seems to be an established Bearish month - last year the Nifty fell from 5278 to 4786 during the month - a fall of nearly 500 points (sensex around 1400 points).
In the last one week Nifty is down 270 points (from 5800 to 5530) and the sensex down nearly 700 points so far.
Also in the last 2 days Silver prices fell by nearly Rs 6,000/kg.
So if the past year is any guide then the market is heading towards 17500 sensex or Nifty 5250.
Or is this year going to be any different??
My personal opinion is that crude oil prices now around $ 110 would drift down by 10% to below $ 100 in the next few weeks and this would have some favorable effect on the inflation figure for May - and the market unlikely to go much lower - as the liquidity position is still good - though the sentiments are very negative.
Would I bet on my own opinion? - very unlikely,
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