Reply #66: Global gloom overshadows IIP surprise: Dip below 5500 scary

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http://www.moneycontrol.com/news/market-edge/global-gloom-overshadows-iip-surprise-dip-below-5500-scary_542807.html

Equity benchmarks fell quite sharply in the second half of trade - down 249 points on the Sensex, especially after sell-off in the European markets. Even better-than-expected industrial output data could not support the market because data was quite better only on sequential basis, but it is still bad when calculated on an anually basis.

The 50-share NSE Nifty closed below the 5,500 mark on Thursday, down 79 points to close at 5,486. The 30-share BSE Sensex plunged 249 points, to settle at 18,335.

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Sajiv Dhawan, JV Capital Services says more than the dip the most scary matter is the short positions in the market which been between 5600-5700 on the Nifty.

“If I was a short seller why would I cover those positions back and in a real hurry, I am quite happy to maybe to see the markets drop to 5600 or 5700 even and probably short sell again there is just too much bad newsflow at the moment,” Dhawan explains.