We opened in line with the overnight weakness. With earnings season almost over so we don’t have much to look forward. It’s funny though, now days during the first half of the day, Nifty trades in a tight range waiting for Europe to open and take cues. Anyway today we closed below the 200 DMA. Nothing major to worry, this is an important level and where both Bulls and Bears will show maximum resilience to defend or break it. In technical terms if an important Moving Average is broken then the one below or above becomes the logical support or resistance or if you fancy you can call it a TARGET. In this case we have the 20&50 DMA (below) at almost the same place so the logical support is 4950/5000 (by the way before that 5100 also looks hunky dory!). Till this holds we assume the trend in question is up and this is just a technical pullback. Once again I reiterate with earnings over we really need a strong trigger to keep going. The only threat comes from the Government! Yeah! You read right. In the year of election the Government is desperate to impress and the Market abhors smart alecks!
"Everyone thinks of changing the world, but no one thinks of changing himself."
Leo Tolstoy
No comments:
Post a Comment