Volatility Rules the Roost

Most people want to be told about how high the market will go and their interest in knowing about the lower end of the fall is only from the perspective of whether they can buy over there. This is the innate nature of most participants, so the comment to offer in a strongly declining market is limited. The sharp decline we have seen over the last couple of weeks or so has resulted in big swings in the market. When you look at it in an offline mode, they all seem manageable and some bear traders would relish such moves, but in reality, living through the event creates some mental issues for most active players and their moods keep swinging from one extreme to the other.

The nerve-wrecking volatile moves during the last week have been a nightmare for the market participants and managing intra-day positions during the last week would have been a hell of task as the daily range for the Nifty during the five trading sessions has been above or near about the 10-day average range. Overall, the undertone of the global stock market has been bearish as it has continued to fall during the week but staged a relief rally on Thursday which was triggered after the Bank of England (BoE) unveiled a bond-buying programme.