Nifty future plunges to almost 5000 levels….fat finger? algorithm error? Reliance results awaited as markets end up 1.6% for the week…

Markets saw a subdued start to the day.  Global cues were disappointing.  US economic data and fears of a French downgrade played on traders mind.  Nifty was rangebound and recovered – in the afternoon trade markets were jolted rudely out of their slumber.  Nifty futures suddenly plummet to 5000 in what is now being examined as a possible algorithm error.  Nifty dropped to 5245 but recovered from those levels to close the day 5290 down 31 points.  For the week Nifty has closed up 1.6%.

The other autos took over from Tata Motors and M&M was the biggest gainer up 2.82%.  Wipro too was up about 1%.

The losers list was predictably longer. IDFC led the list dropping 3.27%. JP Associates, Hindalco, Siemens, Tata Power, Ambuja Cem, Rel Infra, BHEL and L&T all lost more than 2%.

KEC International gained on the back of good orders as did Astra Microwave.

Markets were waiting for Reliance numbers which were to come post market.  The results are expected to be tepid but if there are any surprises in that then on Monday we could take cue from that and also from TCS results which will be out next week.  Nifty is now looking at its support level of 5274 and the resistance of 5330. Global trends will dictate future direction.



Leave a Reply