Pilot fish and Mumbai Sensex

Pilot fish and Mumbai Sensex

December 11, 2006

Victor Niederhoffer often talks about pilot fish, moment in one market indicating moment in another market. Last time a swoon in worldwide markets was followed by US market correcting 10% or so within few days.
Those watching the pilot fish theory should look at the Indian market yesterday, they took a tumble of 400 points.

Sensex crashes by 400 points
It was a bad day for the markets as it saw a savage correction. It ended in deep red near the day's low on account of heavy selling in scrips across sectors.

It was a broad based selling with all sector indices ending in red. The downtrend was led by banking stocks after the CRR rate hike by the RBI followed by the metal stocks.

The Sensex saw a free fall of over 500 points in the mid session and closed with a loss of 400 points. The Sensex saw the biggest single-day fall for Sensex since May 18.

The Sensex closed at 13,399.43 down down 400.06 points or 2.90% at 13399.43, and the Nifty down 112.50 points or 2.84% at 3849.5.

Time to tighten stops and protect profits on open positions.