StockFundoo Methodology

Powered by Fundamental Deep Value Investing and Technical Analysis
Detailed Stock Analysis updated on a Daily Basis
Daily Nifty View and Market Trend Analysis

Friday, October 5, 2012

Another Flash Crash: 15% Down Spike in Nifty: Chart

At 9:55am this morning, there was a whooping 15% spike in Nifty for a brief second. This resulted in Nifty trading 2.5% lower for a while later. Pls see the 30 min chart and 1 min chart below.

What caused this Flash Crash? There might be several traders whose Stop Loss would have been damaged and tremendous loss caused because of this. Pls see below:

Update: Later in the Day NSE updated that "Fat Finger" trade by dealers at Emkay Global, sold 650 crores of equities below market price. This caused severe price correction in bluechip stocks and hence took Nifty down along with them.

Question to ask to Nifty is that: Why to allow primitive price discovery mechanism at bourses. Why can't you sniff for orders with error, i.e. punched price severely away from current market price and halt execution of such orders.

The sentiment was totally destroyed this morning, and Midcaps and Smallcaps took a heavy beating, all thanks to Emkay Global Fat Finger Broking Services. Cheers!

No comments:

Post a Comment

Related Posts Plugin for WordPress, Blogger...