Nifty This Week In Technical Charts: Time To Take Profits From Shorts Off The Table

The market had been churning for five weeks on the trot and something had to give. Soon. And it was the support that gave in. Under assault from strange quarters. No one quite knew what to make of it—just like they couldn’t when the original Hindenburg was launched. For info, the Hindenburg was a gas-filled flying transport in the 1930s. It was called the blimp and given the name Hindenburg later (for the then German chancellor). Did you know that the most famous of Hindenburg was the Good Year blimp? But here you had Hindenburg Research instead, setting us off to a bad year start. To keep the story going, the original blimp (also called the Zepplin) burned and crashed, killing about 36 people; and here we have it burning and crashing a market with thousands getting killed (metaphorically). A question pops to the mind—did they choose the name of the company deliberately? Like crash and burn everything they research? Reading their history certainly seems to suggest that they like to create some mayhem. Well, folks, you certainly got your jollies here in India—Nifty down 3.5%, 6.1% for the Bank Nifty, and 4.5% for Smallcap—all over the last two days. Crash and burn baby. Mandivalas of the market are shouting Hindenburg ki jai and some old timer Germans just woke up scratching their heads and wondering 'What now'?

Just in case someone didn’t get the drift of all that, I am speaking about the report that cracked the market in the week ended—the Hindenburg Research. Those that didn’t quite get what I was talking about earlier maybe could do some research on the Hindenburg blimp itself.

Anyway, getting back to the point, the attack on Adani brought out a bearish angst among the traders and the market went swoosh. All interest in the budget went out as people got into managing their own persona budgets and burned up phone lines to their advisors and money managers, asking whether they are better off with money in a fixed deposit? Typical. But should one panic much? Let’s look at the weekly chart this time first.