The week that washed off a big 1000 points from Sensex!! No ratings yet.

The week 7th July-11th July, 2014 went by was characterized by wild swings on either sides. On one side, Nifty and Sensex went on to make the all time high at 7808 and 26220 respectively. And, on other side of the week, the markets witnessed a major unwinding of positions which led to the biggest fall in the markets, since last one year. The euphoria set in the markets came to a halt post the face-off of major events like the NDA win, Union budget etc.

The major indices hit a losing streak that continued through out the week. On Friday, the fall smashed a whooping 937 points from Sensex and Nifty lost  292 points (-3.77%) to end at 7,459.60. The major setback was set in mid-cap and small cap index where Mid-Cap index fell 670.51 points (-7.02%) to 8,875.24 and the Small-Cap index fell 819.92 points (-7.80%) to 9,688.11.

Amidst this losing streak, it was the FMCG sector which was still doing well. In a market where everything was bleeding the this sector was up 1.47%.

It is important for active traders is to analyse the current situation and reshuffle their trading portfolio to what market throws at them. The traders should also look to understand if this recent fall is strong enough to neutralize the 67,300 lakh crore funds poured in from foreign investors (since last seven months) OR is it a mere healthy correction which is inevitable in any trending market.

Traders’ Chowk

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Author: Traders' Chowk

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