The day is over. What a roller coaster it was.

As the election mode announcements kept coming, there was muted reaction. NIFTY stayed in a range moving a little bit here and there.

Then came the proposal about Long Term Capital Gains and the NIFTY tanked.

It touched the low point of the day at 10878.80.

And did not take much time to recover smartly to go to day’s high point of 11117.35.

Once the heat of the moment trading was over things cooled down a bit and NIFTY ended the day at 11016.90 almost 100 points down from the high of the day.

In three previous years market had closed near to the high point of the day whatever the volatility of the day.

Today we saw a move of 238.55 points from the low of the day.

What does it tell us ?:

LTCG is going to impact investments. It is good that gains up to January 31, 2018 will not be taxed. But after that it is 10% of the long term gains as tax.

Almost every sector had a steep fall before the immediate recovery. To me it is sign of weakness.

Market has been on steroids of liquidity too long and maybe it is time for a decent correction.

Again, I may be wrong.

Markets can fool all the people all the time.

Today, we made our FORUM active— https://optionsnext.com/forum/

Before the budget presentation I had posted there that BHARTI AIRTEL, INFOSYS and MARUTI look weak.

Well they turned very weak before recovering with the rest of the market. INFOSYS and MARUTI still ended the day with losses.

Please keep sharing your thoughts in the forum. Let it become an interactive and active place for sharing your trading ideas and thoughts.