The BSE Sensex plunged over 700 points and Nifty declined over 200 points.Let me put the reason from both Technical and Fundamental Perceptive
1. Fundamental
Liquidity Squeeze by FII’s : FII money is Hot money which chase return irrespective of market. The Hottest Stock market on earth right now is Chinese Stock Market which is running like there is no tomorrow. China’s securities regulator approved 30 new initial public offers (IPOs). FII withdrawing funds for investing in IPO in China. $175 billion of IPOs are lined up this week.
Spike in Crude Prices: Oil hits 2015 highs jump 50% from 2014 Lows We are net importer of Crude Oil and Jump in crude oil
2. Technical Reason
Trading below 200 DMA: Nifty/ Sensex after 15 months are trading well below its 200 DMA, putting pressure on market, as many FII’s have 200 DMA benchmark for buying or selling.
The fast fall we saw in opening was triggered by algorithemic plotforms , as per dealers Aberdeen Global has sold 13 lakhs Nifty futures based on their program which leads to 159 points fall in matter of 20 sec.
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