Fierce battle between Bulls & Bears sends Nifty plunging to the lower circuit
Friday the 13th, is supposed to have ominous implications for the stock markets, according to some superstitious pundits.
The unscrupulous Bears exploited this situation.
They came en masse to Dalal Street, armed to the teeth, with a view to creating mayhem and havoc.
They succeeded in their nefarious intentions.
The relentless selling pressure on the pretext that the deadly Corona Virus would cripple the Global economy sent the Indices plunging to the lower circuit.
A colossal fortune of Rs. 12 lakh crore evaporated into thin air in the blink of an eye.
#BREAKING | #NIFTY, #SENSEX HIT 10% LOWER CIRCUIT LIMIT. MARKET TRADING HALTED FOR 45 MINUTES pic.twitter.com/NqDaubv9AS
— ET NOW (@ETNOWlive) March 13, 2020
In sub 10 minutes of trade
Nifty at lower circuit (-10%) !!12 lakh cr eroded in terms of Total BSE Market Capitlization in sub 10 minutes!!!#nifty50 #StockMarket #stockmarketcrash #NIFTYFUTURE #CircuitBreaker
— Nigel D'Souza (@Nigel__DSouza) March 13, 2020
Kyu rok diya market ko…? Mast thok raha tha mai
Thankfully, SEBI and the stock exchange authorities came to the rescue of the beleaguered Bulls.
They shut down the stock exchange to cool down the frenzy of the blood-thirsty Bears.
#MarketSlump | #Nifty hits lower circuit, trading halted for 45 mins#CoronavirusPandemic#CoronavirusOutbreak#COVID19india pic.twitter.com/7895RkZAcc
— CNBC-TV18 (@CNBCTV18Live) March 13, 2020
This did not go down well with some punters who were mercilessly hammering the helpless stocks.
“Kyu rok diya market ko…? Mast thok raha tha mai,” they observed in an irate tone.
Kyu rok diya market ko…?
Mast thok raha tha mai ??— Mitesh Patel (@Mitesh_Engr) March 13, 2020
I have created 5% of total volume in one stock before pause if market.
Guess the stock— Mitesh Patel (@Mitesh_Engr) March 13, 2020
Bulls turn tables on Bears
The strategic time-out gave the Bulls much respite.
They reassembled and launched a concerted Do-or-Die attack against the Bears.
Overwhelmed, the Bears had no option but to beat a hasty retreat, sending the Indices surging upwards like rockets.
The Nifty surged a mammoth 1400 points while the Bank Nifty soared 3815 points.
WHAT A DAY!!!
BULLS CHARGE AT THE BEARS AFTER A WHILE TODAY!!
*Nifty moves from 8555 to 9955 (+1400 pts)
*Nifty Bank moves from 21351 to 25166 (+3815 pts)Largest recovery intraday in Indian stock market history!!#StockMarket #Nifty #CoronavirusPandemic
— Nigel D'Souza (@Nigel__DSouza) March 13, 2020
After a lower Circuit on Nifty, this is the first time ever I have seen the markets recover intra day and start trading in the green.
This is a historic day for the Indian Capital Markets !!
— Yatin Mota (@YatinMota) March 13, 2020
Abbey ye Nifty hai ya videogame ? never seen such moves in mock trading also ?
— Subhadip Nandy (@SubhadipNandy) March 13, 2020
Daredevils grab stocks at bargain basement prices & make fortune
At this stage, we have to note that while most participants were frozen with fear, a few daredevils did venture out to scoop up stocks at dirt cheap valuations.
Massive gains of 20%+ were made within minutes of the stock exchanges reopening.
Made 20% neat from the morning buys. I am out.
Will re-enter at lower levels again. The dream target of passive investors done in a few hours? https://t.co/SR0oHwLDQU
— Subhadip Nandy (@SubhadipNandy) March 13, 2020
There was also a cool down in the Volatility Index (VIX) which caused more gains to effortlessly gush into the pockets of the daredevils.
200 points on selling a straddle, zero sweat. Easiest trade of the day ?
— Subhadip Nandy (@SubhadipNandy) March 13, 2020
Indian markets come off circuit lows
Stocks have seen a BIG RECOVERY FROM LOWS!!OFF TODAYS LOWS
INDUSINDBK 28%
KOTAKBNK 23%
BPCL 22%
M&M 22%
YESBANK 19%
HCLTECH 18%
HEROMOTO 18%
ONGC 17%
GAIL 17%
AXISBNK 16%#Nifty #StockMarketCrash2020— Nigel D'Souza (@Nigel__DSouza) March 13, 2020
Got off the phone with an investor. Someone I respect a great deal. He picked up the phone and said,
"Prashant I will call you back, this is the greatest day of my life. I have to concentrate on what to buy in serious qty"#Wisdom #MarketSlump
— Prashant Nair (@_prashantnair) March 13, 2020
Short selling should be banned?
Some pundits suggested that short-selling should be banned so as to rein in the rampaging Bears and prevent them from creating mayhem and havoc.
China and South Korea has banned short selling.
May be something worth considering in India ? https://t.co/0uhEr9KlCe— Nilesh Shah (@NileshShah68) March 13, 2020
However, the proposal was met with vehement opposition from informed participants.
Sir, you're thinking so because you have skin in the game.
If shorting during panic should be banned, then long positions during euphoria too should be banned.
Nothing could be as anti-markets as banning short selling.
— Anuraag Bavaria ? (@AnuragBavaria) March 13, 2020
Why? Shouldn't we then ban buying when markets are rising too far too fast? Or do you just want "reforms" which are in your interest?
— Ashtray (@heartfridays) March 13, 2020
Than we have to ban first buying when market valution is high
— Sandeep jangir (@Sandeep53723) March 13, 2020
Suckers rally or a genuine bottoming out?
Now, the million dollar question is whether the rally after the deadly lower circuit represents a ‘suckers rally‘ or is a genuine bottoming out?
Anant Acharya had faced ridicule from the other pundits of Dalal Street when he had propounded the theory, during the peak of the Bull market, that the Nifty would plunge to levels beyond contemplation (see Only The Paranoid Survive! Expert Had Predicted (1 Year Ago) That Nifty Will Plunge To 9200 & That Investors Will Get Butchered).
Now, he has achieved fame and incalculable wealth.
Worse, even his revised lower target of 8780 was breached by the Nifty amidst the carnage.
Target hit with lower circuit. Feel so sad for those who kept fighting me. ??? https://t.co/xyclmrCyKw
— Anant Acharya (@TheAnantAcharya) March 13, 2020
He has warned that we are in the midst of a “great Bear market” and that this is a “suckers rally“.
One more violent plunge is around the corner.
Target for 23rd March should be around 10700. But me not trading this rally. One more decline should be on the cards from 23rd march to 6th April. Watchout!! ?
— Anant Acharya (@TheAnantAcharya) March 13, 2020
So many messages asking for but recommendations. My advice. Dont get trapped in this suckers rally… This will be a volatile week with violent swings both ways till 23rd March.
— Anant Acharya (@TheAnantAcharya) March 13, 2020
Gold confirms my assumption of a great bear market. In the great bear market, when stocks consolidate, Gold drops badly….today gold confirms, this is not a short term correction. This is likely to be a 30-36, month decline. Terrible days ahead. https://t.co/cRgeyIlyjT
— Anant Acharya (@TheAnantAcharya) March 13, 2020
This theory is endorsed by Subhadip Nandy, a veteran trader.
He has warned that this was a “classic bear market rally, fast and furious” and that markets will go down once again.
I normally do not analyse on Friday evenings, but today was an exceptional day. Preliminary data analysis suggests this was a classic bear market rally, fast and furious.
We will go down once again. So don't get trapped in longs while chasing the market.— Subhadip Nandy (@SubhadipNandy) March 13, 2020
Mark Minervini, a well-known trader on Wall Street and author of several bestsellers on the stock market such as Think & Trade Like a Champion and Trade Like a Stock Market Wizard described the rally as “bait for the bottom fishers“.
I'm concerned this rally is bait for the bottom fishers. Be careful! Everything is NOT going to be back to normal in one day. I still hear many talking buying opportunity. If you're a day trader, there's an opportunity everyday. There is no rule book that says we can't go lower.
— Mark Minervini (@markminervini) March 13, 2020
Anil Singhvi, the charismatic editor of Zee Business, also warned us not to venture onto Dalal Street.
“नहीं लेना है नहीं लेना है नहीं लेना है. 25 साल की इज़्ज़त, अनुभव को दांव पर लगाकर,” he exclaimed in a dramatic fashion.
Dow bleeds 2300 pts:
Recommending BUY in fundamentally strong stocks is “safe”n “faishonable” for anyone
But You have to put ur neck out to be contra n give a strong call like
नहीं लेना है नहीं लेना है नहीं लेना है
25 साल की इज़्ज़त, अनुभव को दांव पर लगाकर ?@ZeeBusiness
— Anil Singhvi Zee Business (@AnilSinghvi_) March 13, 2020
Rally is not showing legs to sustain….Dow futs have also come off…Europe off days high…..retail should let dust settle before jumping in..
— Darshan Mehta (@darshanvmehta1) March 13, 2020
However, Basant Maheshwari opined that a bottom has been made, at least for some high-quality front line stocks.
Bottom made – depending on which stock you are looking at.
— Basant Maheshwari (@BMTheEquityDesk) March 13, 2020
In the light of these circumstances, we will also have to adopt a wait-and-watch approach and tuck into fundamentally strong companies on dips.
