Now a days it is becoming more a matter of perception how you interpret news. If the hike in repo rates was considered bad enough then the news of improved IIP numbers negated that bad feeling. I guess the RBI news was discounted to a certain extent by the market participants and it was the improved IIP numbers that set the tone for the day of course aided by good cues from Europe which opens after us. Anyway today intraday action was good. It tested the patience and then rewarded the worthy with a break out! Nifty opened gap down (this was expected with a very weak Dow and hike in repo rates announced yesterday). Anyway this news though bad wasn’t bad enough to warrant a new low. Like I mentioned above the good IIP numbers then did their job. After that it was one steady rise with every pull back to the EMA a buying opportunity. We have closed on the upper end of the intra day range and ironically at the same place which, yesterday, we were trying to breakout from! On the daily chart it looks like we have hammered out a bottom for ourselves. With the Bank Index also giving a bounce from its oversold levels and negating the repo hike it looks like the bullish sentiment is back for some time or should I say it’s back till the Inflation numbers we would be dished tomorrow noon!!! For the people who think we have bottomed out for the year 2008 I have only one thing to say “Hope springs Eternal in a Bulls heart!”
"The best way to predict the future is to create it."
Peter Drucker
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