Market updates 13/09/2011 by N Corp

Today is one of those days that make you feel less happy. Yup, I lost a few bucks to the market today! Anyhow, the best part of being a day trader is the freedom to let bygones be bygones.

Well the market started well today, like a young man who has decided to run a marathon and make a world record for speed simultaneously, as can be expected, neither was accomplished. It rose strongly to 16765 giving false hopes to those who want to see a silver lining in everything. Even the best of traders became optimistic(including yours truly) against their better judgement and analysis. All looked sunny and life was beautiful again when...

It started to nosedive. The feeling in there was like travelling in plane that has run out of its fuel, you wait for the inevitable to come... the triggers to go off and huge losses smile at you from above. The market tumbled to 16378. Approximately 400 hundred points in 2 hours that is around 3 points per minute; phenomenal!

Now we come to the question, which is your companion in solitude: "Why did she do it?" The answer is to be found in the timing when she started to behave erratic. It was precisely the time when the European markets open and information and trends start to permeate in the Indian market. As has been mentioned by me in my earlier post that that the uncertainty in Europe due to the ongoing debt crisis shall linger for a while and continue to affect Indian markets till they get used to it (which might very well be- never).  Also the weak position of INR against USD is a contributing factor. 

The market closed at 16467 i.e. 34 points lower to yesterday's. 

As if all this was not enough drama for one day, the Indian rupee further tumbled to a new one-year low.

The Indian Rupee has touched a new one year-low (INRUSD 47.60771 ).
Just notice the steep rise (fall in value) towards the end.

Finally, some of the lucky guys who shorted at 1200 Hrs are hereby congratulated by me and reminded too that Fortune is a blind woman; and those who gloat over it are best laughed at later.