Sensex Crashes 700 Points:Reason for sharp fall

The BSE Sensex plunged over 700 points and Nifty declined over 200 points.Let me put the reason from both Technical and Fundamental Perceptive

1. Fundamental

• Liquidity Squeeze by FII's : FII money is Hot money which chase return irrespective of market. The Hottest Stock market on earth right now is Chinese Stock Market which is running like there is no tomorrow. China’s securities regulator approved 30 new initial public offers (IPOs). FII withdrawing funds for investing in IPO in China. $175 billion of IPOs are lined up this week.

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2. Technical Reason

• Trading below 200 DMA: Nifty/ Sensex after 15 months 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-

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