How come sensex opens 172 above previous close

[drvinod_k]

hello friends,
even i saw what happened in the first few secs of trading. i personally feel it was a mischief by some operator. or may be it was a ploy to send a signal to the technical ppl. cause if u c the day chart for sensex u can c that it signals a gap up open above previous high and finally a close below the previous sessions bottom which according to TA is not good although i am no fan of TA i think this has been done on purpose to get some heads thinking. anyways only time shall decide where the mkts r headed and wether the bearish signal is something to be dwelled upon. on the other side i got information that the spike was due to some freak trade in infosys which has been reported by fellow boarders also. it is a point to ponder for the market regulator though. pls convey your observations.
warm regards,
drvinod_k

 

[darsh_goswami]

Well,...

Something Is Hot Here,...

I Read All Comments But I Think The Infy Thing Is Still Better One... Infy Traded @2400 ( Obviously Didnt Stay There For A Second Also ) And That Could Be The Only Reason.. Otherwise It Could Be The Technical Fault ..

I Dont See Any Chances Of Punters Or Operators Have Done Any Mischief With This. ( It Seems Almost Impossible In Sensex & Nifty Atleast ). Coz Sensex Is Not An Individual Which Can Be Traded By Any Operator.

None Of The Other Heavyweights Was So Up So... Infy Did The Trick Or Technical Problem Of Bse Server. Thats What I Can See...

Anyways ,... Will Be Checkin Here For Updates ,..

Hopefully We Can Find Out The Good Reason For That....

Regards,...
Darsh

 

[Czar]

Nope...this has been on daily in many stocks, the only reason i guess is to mess the charts...what other benefit is there i cant imagine... daily severals scripts have these freak trades & on numerous occasions cover gaps much much far away... this is ridiculous.

 

[toxicexpulsion]

image this happen with all the sensex scripts for a moment! That would be a ...

 

[Jai.Shewaramani]

Hi guys,
I don't mean to intrude on your conversation here. But I couldn't help have a grin on my face reading a few of the posts here. The fact is that Sensex and Infosys..and possibily a few other stocks that opened higher have nothing to do with manipulation. It was a genuine mistake, a tick error if you might call it. It's something pretty common in the financial markets. I've attached the tick charts for Sensex and Infosys. You will notice that it couldn't stay at those levels for more than 30 seconds, which if the opening would be genuine, wouldn't be possible. (See the thin faint red line dropping down on the extreme left of the chart)

Such a situation also occured in Gold on Oct 2nd 2006 at about 1:15 CET, that's about 4:45 am Indian time. This is the period before the Japan market open and the financial market is pretty much dormant in these hours. In the attached chart for gold 15 minutes, you'll notice that it hit a low of $578.10 and closed at $598.20, which is not a possibility in 15 minutes at such dormant hours. It was meant to be a low of $598.10 and not $578.10...

Another incident in Gold itself was in June. In the hourly chart, it had a high of $656.10 and a low of $592.40...If you trade Gold regularly, you would agree that a movement of $64 in an hour is virtually impossible. An average movement of gold in a day is between $15 to $25, thus such a movement wouldn't be possible in the whole day too.

I can post more incidents in different markets, but I don't want this post to be a full fledged novel

Hope this clears the doubts of many who yet think of trading as gambling instead of Investing.

Regards,
Jai Shewaramani

 

[Spiderman]

hi jai,
thanks for your detailed explaination . the question is does a few shares of infosys have enough weightage to move the sensex 172 point up at the opening shot. if it is so then assuming a few shares of all 30 constituent of sensex should move sensex a whooping 5000 point in a single shot at opening bell if they all have a theoretical freak trade due to a technical snag or some other reason .Just multiply 172* 30 (the number of sensex constituents) = 5160 . this could play havoc.

spiderman

 

[tradefno]

HI ALL
i read the posts on infosys and the freak trade.most of the times in indian markets ,whenever ther was a freak quote ,u can find the stock price tradind at that level after few weeks.this happens many times with inde based stocks.

so we can expect to see infosys around 2400 shortly.
also on 13th nov, nifty dec future had a low of 3588.8,,

happy hunting,,
tradefno.

 

[darsh_goswami]

Thanx Jai For Ur Explaination...
And Also To U Too @ Spiderman For This Technical Mistaken Jump Around 5000 Points A Day ... Sounds Good ... Goood Imagination...
But
My Question Is That " Does All The 30 Players Having Same Weightage To Pull Sensex Up For 5000 Points ?? "

I Guess Ur Answr Is No Only....

Anyways ,... This Issue Is Becoming A Hot Thread All The Way In This Forum....

Lol...

Regards ...
Darsh

 

[saga364]

Hi guys,

I small clarification. If my post caused any anxiety, please ignore. It was not meant to send any "signals" to anyone. I wrote what I saw on news and as Navjot Singh Sidhu says ... The only man perfect ever ... was crucified !

Regards,
http://pseudosocial.blogspot.com

 

[Spiderman]

Hello,
And now an opening 154.14 points above previous close again on a so called freak trade on sensex. This time they say the culprit is reliance (cnbc your stock evening edition). Sensex opens past 14000 mark on opening bell on a freak trade and we pat our back for scaling a landmark. WHAT SORT of bullmarket are we in. A steroid shot bullmarket??? Are these good signs for a bullmarket or we should smell somthing worst happening in a day or two any
comments?

spiderman