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Charts & Analysis

Market Snapshot: Sep 2, 2011

The week saw a 6.2% rise in the Nifty, which closed at 5040, up substantially from last week’s close below 4750. The fibonacci retracement at 4800 (61.8% of the rise from the lows to the all time high) seems to be complete, and the bounce has been sharp.

Nifty Snapshot

Sectorally, Metals did the best, up 12% and realty came back up 11%. These have performed the

Sector Moves

Volumes aren’t encouraging either. The average daily volume in August – a month that saw a drop of  over 8% – was 11,700 cr., much lesser than earlier. This, to me, indicates the bottom isn’t yet in.

Nifty Volumes

(Ignore September, it’s just one day’s volumes)

  • Sanjay says:

    I am novice in share market and dont know how it really works. But I was wondering whether low volumes can be because of paradigm shift?
    ValueResearch has just published article that retail investor have become wiser and are doing SIP in falling market. Also, FII is not selling in a hurry. They are not selling when sensex goes below 17K and domestic investor wont buy when sensex goes above 18K. Because of 2008 experience, I guess margins for day trading, options/futures would be high.
    When no market participant is in no hurry; there is no euphoria in the market then volumes are supposed to be low. And in fact it should be the expected behaviour, right?