Flash Crash Black Friday for Nifty and Nifty 50 Stocks

By | October 5, 2012

Everything was going right in favor of Bulls Government doing big bang reforms, FII whose bags are flusehed with liquidity by ECB and Fed are bullish on india and Buying heavily and Nifty trading at 18 months high. But it took a single trade to give a blow to sentiment, Friday 05 Oct 2012 will go in as Black Friday when the flash crash happened in Indian Stock market. Prices of Blue Chips mostly in Nifty 50 stocks were down by 20-25% as shown in below screenshot. Click on Images to enlarge them.

 

The 50-share Nifty hit its lower circuit filter Friday as spot prices dropped over 900 points to a low of 4,888.

Sell orders worth Rs 650 crore executed by Emkay Global Financial Services sent the 50-share Nifty into a free-fall in early trade , the National Stock Exchange said. Trading in the cash market was frozen after the steep fall triggered the intra-day circuit filter, which shuts down the system when limits on either side are breached.

The NSE has said the orders executed by Emkay were on behalf of an institutional client, but the quantities were erroneous.

 

The last time Indian markets were hit by such erroneous trade was in April 2012 when the Nifty futures crashed over 300 points in afternoon trade. The same day, a similar trade was witnessed in Infosys futures.

In 2010, shares of Reliance Industries had crashed nearly 20 per cent on execution of a large ‘sell’ order at a very low price. The Sensex had plunged more than 600 points after the order was executed on BSE. Reliance has the highest weightage on the Sensex.

 

 

No Trades will be cancelled: NSE

NSE reports that Circuit caused by ORDER LIMIT given. Due to the lower circuit Trading was freeze. No order will cancelled. All that mean if your SL hit or you fortunately bought at lower price. That you have to bear and carry.So NIFTY SPOT LOW: 4888.20. is legally valid and it will count.

 

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7 thoughts on “Flash Crash Black Friday for Nifty and Nifty 50 Stocks

  1. Bramesh Post author

    Dear Sir,

    I have put my reasoning in weekly analysis over the gaps whether they are filled or not filled?

    Rgds,
    Bramesh

  2. Bramesh Post author

    Perfect technical are always one step ahead of news..

  3. Bramesh Post author

    I agree with you on this … It will be a sentiment breaker for Stock market in extremely short term..

  4. subhash

    Dear Sir,

    As per the norms of nifty circuit is 10% so equally this is the fault of exchange I think it has not a error something is cooked in between.Its erroded the sentiment and confidence of the investors.

  5. vinod

    Its was the nifty spot which got affected(hit lower circuit) – any one having a bit of patience when the spot hit the lower circuit would had observed nifty futures(if they had open position in nifty) levels as they were very much in tact. So as you say descipline trade would definitely count in such days !!! And all technicals should resume/work normal from monday.

  6. harish

    DEAR SIR,
    WHAT EVER IT HAPPEND TODAY ! I JUST WANT TO KNOW THAT THE GAP THAT REMAIN DURING BULL RUN, IF WE COUNT TODAY’S LOW THAN ALL GAP FULFILL IN ONE DAY OR THAT IS OTHER PART? KINDLY EXPLAIN IT.

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