Why we witnessed something special in the market today! (Fri 13th Mar 2020)

Friday the 13th certainly lived up to its reputation with a wild day in the market! Here is why we witnessed something special on 13th Mar 2020

Published: March 13, 2020 at 6:03 pm

What a day today (Fri 13th Mar 2020) turned out to be in the markets! A 10% fall shortly after opening triggered the lower circuit, led to a halt in trading in the NSE and there was a recovery! Sensex recovered 4% intraday! Nifty 3.81%. Here is why we witnessed something special today.

Earlier today we found that we are in the middle of the biggest Sensex Crash but it could be a healthy one for market homogenisation. This is the intraday Sensex movement from 11 to 13th Mar 2020. The opening, closing, highest and lowest prices are shown.

Sensex intraday price variation from march 11 to march 13 2020
Sensex intraday price variation from march 11 to march 13 2020

The reason for such a large variation is said to be short covering. This is when trader short a stock -borrow shares and sell it immediately in the hope they can re-buy at a lower price. This could drive down the market if prevalent. When (if) the price falls lower, they would re-purchase at a lower price for profit. This would drip up the price and is possibly why the market bounced back after trading was halted.

The last two days panned out like this


  • 12-Mar-20
    • open 34472.5
    • high 34472.5
    • low 32493.1
    • close 32778.14
  • 13-Mar-20
    • open 31214.13
    • high 34769.48
    • low 29388.97
    • close 34103.48

On 13th, The variation bet its low and opening or (low-open)/low is -5.8%

This is the 28th biggest variation.

Datel(ow-open)/low
17-May-04-15.8%
22-May-06-11.2%
17-Apr-99-10.8%
16-Mar-92-10.8%
27-Oct-08-10.5%
21-Jan-08-10.4%
24-Oct-08-10.2%
22-Jan-08-9.2%
07-Jan-09-8.8%
02-May-00-8.3%
05-Nov-08-8.0%
17-Oct-08-7.9%
31-Mar-97-7.7%
29-Feb-00-7.6%
14-Sep-01-7.3%
18-May-06-6.9%
14-May-04-6.8%
06-Jul-09-6.7%
19-May-06-6.5%
23-Feb-00-6.5%
19-Apr-00-6.4%
10-Mar-92-6.3%
19-May-09-6.3%
06-Apr-00-5.9%
08-May-00-5.9%
27-May-92-5.9%
12-May-92-5.9%
13-Mar-20-5.8%
11-Nov-08-5.8%

If that does not sound impressive,  try this. The (close-low)/low is 16% on Mar 13th. This is the biggest such variation since 02-01-1991! Even during the 2008 crash, the biggest was 10.6% (27-10-2008) and during the Harshad Mehta Scam, it was 10.2% (16-03-1992).

Today the (high-low)/low = 18.3%. Only one instance was bigger, 18.8% on 17-05-2004.

Finally, the (low-previous close)/previous close = -10.3% today. This is the sixth biggest variation.

Date(Low -Prv close)/Prev Close
17-May-04-16.6%
21-Jan-08-10.8%
22-Jan-08-12.9%
24-Oct-08-12.3%
27-Oct-08-11.5%
13-Mar-20-10.3%

We have just witnessed something special today! Once again, interesting times ahead.

Do share if you found this useful

How to profit from content writing: is our new ebook for those interested in getting side income via content writing. It is at available at a 50% discount for Rs. 500 only!
Did you know? We have more than 900+ videos on YouTube to explore! Join our YouTube Community!

Use our Robo-advisory Excel Template for a start-to-finish financial plan!

Join our courses in exclusive Facebook Groups!

  • 520+ members are now part of our new course: How to get people to pay for your skills! (watch 1st lecture for free). Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show how to achieve by showcasing your skills and building a community that trusts you and pays you!
  • Goal-based portfolio management! Join 2125+ members and get clarity on how to plan for your goals and achieve the necessary corpus no matter what the market condition is!! Watch the first lecture for free!  One-time payment of Rs. 3000 only. No recurring fees! Life-long access to videos (10+ hours content)  in an exclusive Facebook Group! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.

Want to check if the market is overvalued or undervalued? Use our market valuation tool (will work with any index!) or you buy the new Tactical Buy/Sell timing tool!
We publish mutual fund screeners and momentum, low volatility stock screeners .every month.
About the Author Pattabiraman editor freefincalM. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Twitter or Linkedin Pattabiraman has co-authored two print-books, You can be rich too with goal-based investing (CNBC TV18) and Gamechanger and seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation to promote unbiased, commission-free investment advice. He conducts free money management sessions for corporates and associations based on money management. Previous engagements include World Bank, RBI, BHEL, Asian Paints, Cognizant, Madras Atomic Power Station, Honeywell, Tamil Nadu Investors Association, IIST Alumni Association. For speaking engagements write to pattu [at] freefincal [dot] com
About freefincal & its content policy Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on developments in mutual funds, stocks, investing, retirement and personal finance. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than one million readers a year (2.5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication. Freefincal does not publish any paid articles, promotions, PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
Our publications

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingPublished by CNBC TV18, this book is meant to help you ask the right questions, seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now. It is also available in Kindle format.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at low cost! Get it or gift it to a young earner.

Your Ultimate Guide to Travel

Travel-Training-Kit-Cover-new This is an in-depth dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for Rs 199 (instant download)
Free android apps