InvestorQ : Why did Nifty and Sensex correct on the last trading day of the week after rallying for most of the week?
indhumathi Sayani made post

Why did Nifty and Sensex correct on the last trading day of the week after rallying for most of the week?

Answer
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shrinidhi Rajan answered.
8 months ago


That is a good question and there are many answers to the question. Firstly, the markets were tired after a sharp rally in the last three days when the Sensex gained more than 1300 points. Secondly, there was some selling by traders ahead of the week end since nobody wants to take risk over the week end especially when the global situation is so volatile and a lot could change over the week end. Hence traders were not taking chances and staying light over the week end. Lastly, the markets also corrected because oil prices have bounced back from lower levels and gold has also gone up. Normally, gold and equities move inversely and that also impacted the sentiments in the equity market.