Out performance of Indian Stock Markets, inspite of truncated week, defying the global weakness, cannot be overlooked. Return of agressive confidence of traders and retailers in shorting 5000 and 4900 puts might lead them in to a trap, as our markets are waiting for an event, information for going into deep correction, as they have achieved short term top at 5110 (Nifty) 17195(Sensex). Exact top or bottom prediction by any analyst may be a conincidence, in general, however, time cycles generally answer the trends and reversal of trend, with some margin.
As we enter into results season with Infosys coming out with Q2 performance on 09th October' 09 could be one trigger for correction, as there is consensus on improved performance which is already built in current price, as the stock is trading at its all time high. Few economic issues like fiscal deficit, weakening of US dollar, fall in Exports and Imports and the cautious note from Fed Governor Mr.Bernarke that all is not well with US economy sent shivers to investors which resulted in 2% fall in US indices. SGX Nifty already indicating 70 points discount to our earlier close, as our markets escaped the effect of US fall on01.10.2009, to be reflected in our indices on 02.10.2009, as it was a holiday, on account of Gandhiji Birthday.
Nifty Range for the Day: 4980 - 5020 - 5060 - 5090 - 5110 - 5140.
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Monday, October 5, 2009
Markets entered Over bought Zone - Formation of Short Term is round the corner!
Posted by BK VRK Rao at 7:56 AM
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