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Showing posts from October 5, 2012

NSE freak trade fiasco: Will it go scot-free again?

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Given the opaque style of functioning and NSE being the favoured exchange of SEBI, the exchange will go scot-free once again. However, SEBI should seek clarification from NSE and also penalise both exchanges for not following its circular on index-wide filters

The so-called high-tech systems of National Stock Exchange (NSE) failed today.  The exchange which boasts as technologically advanced was hit by a trading error. What I wonder most was not the error but the index which had to stop trading as 10% circuit filter went all the down to 4,888 which is 15.8% down (As per NSE’s own website the day’s low is 4888.2).



If one reads the NSE's circular dated 28th September (http://www.nseindia.com/content/circulars/CMTR21799.pdf), a 570 point (10%) should have triggered the circuit breaker. Once the circuit breaker is hit, the market (both NSE & BSE) have to be closed immediately for one hour.

Extract from the circular is as follows:
On September 28, 2012, the last trading day …

Maruti Suzuki India

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MARUTI (1390) - Posted on 17th Sep "Above 1250-1240 Upside target 1415-1430" as posted yesterday it almost attacked the mentioned upside target (made high 1410)
Now resist 1415-1430
In case trade and stays above then ready for another big upmove 

Reliance Capital

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RELCAPITAL (452) - Posted on 24th Sep . Upside target 442-458 as posted yesterday completed the mentioned upside target (made  high 462)
Now what next ? 
In case trade  above 462 going to top out 480-495

State Bank of India

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SBIN (2345) - Posted on 24th Sep "Above 2240-2260 upside target 2335-2375" as posted yesterday it attacked the mentioned target (made high 2349).
so now already mentioned resist of 2375  remain same
But trade and stays above that next attack in upside 2466-2476

Sobha Developers

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