SENSEX : SENSEX continued its downward journey with more force today as there were more participation on the down side including metal stocks small banks and most of the reality and cgs sector stocks fell sharply.
The “RESULT “ syndrome continued with BANK OF BARODA which declared results today tanked more then five percent although icici moved up from lows with very good results it will be interesting to watch icici for next couple of days.
Traders/ investors must be thinking that why should stock price come down so sharply even after companies are announcing increased profits ?
The answer lies in some BASICS of technical analysis and this basic rule says that market may be knowing something more of the future fundamentals and so market is reacting adversely now.
SENSEX has closed below one shor term support line and below 19306 which is BEARISH.
A close for sensex below 19171 and 18976 will be EXTREMELY bearish and if that happens sensex will try to take support at its 200 day ema.
Today being last day of the week if we see a weekly close below 19171 sensex may well have completed ANOTHER LOWER TOP.
Nifty : a close below 5759 today will be bearish for nifty as it will be bad weekly close and also on daily chart it will close below important SUPPORT LEVELS.
On the upside there are a few major resistance established now and the most important one is 5912 and the upper trend line which has been shown on NIFTY chart.
PLEASE remember that we have been advocating this upmove from middle of the march 2011 as a BEAR MARKET RALLY ONLY.
And now as we are witnessing weakness on daily chart we strongly feel that NIFTY close below 5693-5649 will have very SEVERE impact on stock prices and that is the precise reason that we have advised our clients to remain in cash by more then 70%.
1 comment:
Naikji ur absolutely correct and ur trading system is superb!!!!!!!!!!!!
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