Downfall May Continue

MACRO TECHNICALS

 The market crashed for most of last week. A hike in the margins on F&O stocks proved to be the trigger and the leveraged money got out in a hurry. That triggered some fund selling as well.

 The Nifty closed at 1470.45 points for a loss of 6.3 per cent last Thursday. The Sensex was down to 4648.31 points for a loss of 5.72 per cent. The Defty lost 6.33 per cent as the dollar strengthened slightly by weekend.

 Breadth was poor. Volumes were low except on Tuesday which was a crucial swing session. Advances were outnumbered by declines.

 The put-call ratio rose to what could normally be described as a neutral at 0.40. The broad BSE500 lost 6.39 per cent till Thursday.

 Outlook: Despite Friday