Sensex Crashes 1800 Points:Reason for sharp fall

The BSE Sensex plunged over 1800 points and Nifty declined over 501 points one of the largest decline in past 5 years .Let me put the reason from both Technical and Fundamental Perceptive


1. Fundamental

  • Yuan Devaluation

Asian stocks dived to 3-year lows on Monday as a rout in Chinese equities gathered pace, hastening an exodus from riskier assets as fears of a China-led global economic slowdown roiled world markets.

Safe-haven government bonds and the yen rallied on the widespread unrest in the financial markets, set in motion nearly two weeks ago when China sharply devalued the yuan and stoked concerns about the state of its economy.


  • Slowdown caused by China

Global stock markets are tumbling after a survey showed Chinese factory activity contracted at their fastest pace since the depth of the global financial crisis in 2009. Fears of a China-led global economic slowdown drove Wall Street, previously seen as a safe-haven, to its steepest one-day drop in nearly four years on Friday.


  • Rupee at lowest since September 2013

Rupee slumped to as low as 66.48 per dollar on Monday morning. It is lowest since September 2013, as Asian markets reeled under fears of a China-led global economic slowdown.


  • Moody’s lowers India’s growth forecast to 7%

Fears over deficient rains in the current monsoon season and gradual progress of reforms have prompted global credit ratings agency Moody’s to lower India’s growth forecast for this year by 50 basis points to 7 percent.
On the macro front, India’s exports narrowed for the eighth straight month by 10.3 per cent in July to USD 23.13 billion, widening the trade deficit to USD 12.81 billion.


2. Technical Reason

  • Trading below 200 DMA: Nifty/ Sensex  are trading well below its 200 DMA, putting pressure on market, as many FII’s have 200 DMA benchmark for buying or selling.
  • Gann Date Effect- As discussed in Weekly Analysis   Gann/Appoint and Gunner plays an important role in finding impulsive move, all studies were pointing towards a big move.
  •  NF opening volume in first 15 mins was 25 Lakh highest seen in past 2 years suggesting serious long liquidation by smart money.


  1. ASHOK said:

    Investor are enjoying market

    In 2013 Oil was at 120 and Rs was at 66

    Now Oil is at 40 and Rs.66 again

    So finally INDIA WINS

    August 25, 2015
  2. Bulls n Bears said:

    i think 7590 is 23% retracement level of entire rise since Sep 2013 to Mar 2015. This level should be watch carefully. also market is in highly oversold level, it can bounce back sharply and then after it will start another round of selling.But on upside also 8040 and 8150 is the big resistance for a time.

    August 24, 2015
  3. durairajan said:

    already in spot the magic number 7777 broken . within see 6666 in spot

    August 24, 2015
  4. durairajan said:

    exellent review sir . your knowledge is a great wealth . keep going on

    August 24, 2015
  5. V.K.Ramachandran said:

    I think markets were artificially inflated to suit powerful interests. Now it will find the real levels soon and then again manipulations start. Meanwhile those who are n the know of things make billions and trillions.

    August 24, 2015
  6. Rakesh said:

    I expect the selloff continues till 7100

    August 24, 2015
  7. Snil Chhabra said:

    Bramesh Sir – Your Gann Date worked just perfectly today. Infact I have observed that most of the time it gives great results. However as you give Gann date for just one week advance so many a times we re not able to take benefit of it as it happens today. May I request you to provide Gann date for two weeks in advance. Thanks – Sunil

    August 24, 2015
  8. rajan said:

    at 7700 accumulate

    August 24, 2015
  9. Hiren said:

    This sell off is beyond everything. If there are China fears, then money should come to India and other stronger EMS but this ? As for currency, i think the fall intensified because of the sell off.

    August 24, 2015
  10. Chetan said:

    What are the levels to look at for putting cash to work…

    August 24, 2015
  11. PT Soni said:

    So where you see the expiry sir…

    August 24, 2015

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