Nifty cracked nearly 2% today. The intensity of afternoon selling suggested that sellers were not expecting anything good to come out of FOMC meeting at Jackson Hole today. Bernanke spoke about 3 hours ago and within 10 minutes most markets were down. Nifty had already closed by then so I am talking about S&P, Bonds, Meat, Copper, Crude.
Just after initial nervous selling, a short squeeze began in nearly every tradeable commodity out there. S&P went up to 1176 after failing to break through 1136 level. As of this moment, almost all of above markets are yet to prove that bearishness is over but the intensity of buying is amazing. Its almost as if Ben had to simply show up and finish his speech for trading rooms across the world to go into a buying frenzy! Check the charts yourselves. Visit finviz.com or forexpros.com or any of the million charting sites.
I just checked broad figures of FII selling and buying at NSE today. Yes, FIIs were selling again in cash today but DIIs bought more on net basis for a change. In futures, FIIs were net buyers. So who was selling and to whom and why? Were these retail investors or did DIIs try outdoing FIIs in shorting? Today’s sellers may just end up facing a wall of gap up open on monday morning. Market may come back down eventually but leveraged sellers could have a tough time. Can’t wait for monday morning now!
