A weak opening, following the global cues, and a smart comeback, on later recovery in Asian markets. Then again looking clueless and waiting for signals from European markets. I wouldn’t say today’s move was some heavy bull initiative carried forward from yesterday. I did trade in Nifty for about 20 points but than thought it was wise to stay in the sidelines (Yes I was clueless, confused and bored!!! It’s still better than getting whipsawed and loosing money!!!). Like I said in one of my earlier posts that the MA crossovers (in this case the death cross at 5090/95 odd levels) is most likely to be tested by the price. Above it we have 200 DMA at 5135 odd levels. So two main hurdles on the upside and below we have 50 DMA there to provide some support. I personally feel with IT Index witnessing profit booking ( don’t blame TCS… its smart people cashing out of the run up we had in IT INDEX!) we need more than Midcaps( yup they were heroes today!) to sustain a strong follow through. Todays candle again shows indecision and lack of conviction (and to top of it all I still don’t understand why ADX is so quiet?). The 60 min chart also shows negative divergence and hints at a pull back (may be we close yesterday’s gap!). Let’s see what’s in store for us tomorrow???
"Good judgment comes from experience. Experience comes from bad judgment."
Jim Horning
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