The markets have crashed further on the back of sustained selling pressure across the board. So is the fall a result of pre-budget jitters?
Technical analyst Rajat Bose believes that before a budget this kind of sell-off is generally not seen, so the market must be anticipating something major something serious and that is why it is a sign of delivery based selling. This fall of 400 points cannot be only due to technical weakness or F and O positions since the February clearing has been light compared to other previous positions.
"So I summarize that there must have been some delivery based selling. We are in for some more weakness and this weakness is a bit unnerving the way markets are falling as it appears that some serious weakness developing." he adds.
The kind of volatility that we have seen in the last couple of months and the kind of movement that we see now shows that the medium-term trend is under the danger."If the Nifty falls below something like 3850 there would be a considerable damage to the medium-term uptrend" he says.
