WHAT NEXT AFTER DECEMBER 9, 2010'S MARKET FALL - Mid and small cap stocks will continue to collapse like nine pins. Why? Well, brokers will ask retail traders to pay the margin. Most have such serious losses that they cannot make margin. In the absence of margin, the broker will sell those shares and may sell large cap shares of retail traders/investors
Normally, such selling ends in a day or two driven by either local fund buying or foreign buying. However, given tight liquidity and losses that the foreigners are sitting with, it is difficult to say that there is buying support (of a stable nature) till 5400
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