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| Moods of Friday |
Some people might argue that it was a day when the Mines and Minerals Development Regulation (MMDR) Bill caused mining companies to lose about 34,000 crore of market cap leading to negative sentiments and causing the market to fall.
In my opinion, what happened today in the Indian Stock markets, was what I term as 'Friday Stock Market' syndrome. There is no such theory or hypothesis, hence you might term this as pure fiction. However, it has been my observation over a period of time that the stock markets more often than not move slightly differently on Fridays compared to the rest of the week. It is as if, they have followed some kind of trend during the week and at the fag end of it, they are in preparation mode for the next week. Unfortunately I do not have the statistical numbers but it will be interesting to see Friday volatility indexes over the last few years. My sense is that Friday always tend to surprise on volatility. And most of it somehow tends to happen in the last 1 hour of trade. So, if the whole week has gone well Friday tends to reverse the mode especially in the last hour of trade. Similarly, if the week's been a disaster, Friday tends to provide that ray of hope for the next week. This is more so in times of listlessness and range-bound market movement.
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