#NIFTY Market Review on the 5th of February.

As most of you may be aware that I have been doing some experiments comparing the overall market behavior with that of the Index. For the last few weeks we had noticed that the behavior of the index was contrary to that of the overall market. When the market was witnessing overall selling pressure the index was showing lot of buying pressure and was moving up.  This index and the market behaving in a contrary fashion was indeed an indication that something was amiss and the index would soon follow the overall market. In the current case I was expecting the index to react sooner. But the Index kept on moving up against a weak market for a over stretched period giving doubts to my belief. Finally the budget turned out to be the trigger and the Index reacted in a big way. The current market had been good learning experience for me. A lot more study would be required to freeze the concepts.   Today’s chart clearly shows there was indeed Buying both in the overall market and the Index in spite of the deep cut. In the market the Buy Volume was almost double that of sell volume. The Index also recovered from the low to close near the top of the bar. The buying pressure was also comparable to the selling pressure though less. All this does indicate that further downside is limited.