New Delhi, March 3 -- 'Ticker' is a weekly newsletter by Vijay L. Bhambwani. Subscribe to Mint's newsletters to get them directly in your email inbox.

Dear reader,

Last week, I wrote the markets were precariously poised as bulls appeared hesitant about lending aggressive buying support on dips. As I have written in my past articles, the cost of funds has also played a part in the decline. Leveraged traders are now faced with the prospects of outsized losses due to rollover costs and the cost of funds. Dick Stoken has written books on this aspect of the markets, which I urge my readers to read.

The MWPL exhibited telltale signs of trouble that loomed over the markets. I have written often that high MWPL is a double-edged sword. On one h...