it was an unbelievable bounce in the nifty yday(although nothing in comparison to the european stock mkts) on the back of huge european union bail out package.
even dow has risen and nearly wiped out its huge fall it made a couple of days ago. everything looks so good? the question being asked is, is it time to buy and whether the bearishness of the fall has ended. but the damage on daily charts is already done.
i say its still a pullback for traders and not exactly buying opportunity for short to medium term investors. but the medium term support on dow(i.e 9800) is very well held, investors with given time frame can buy on declines only if that lvl is held on sustainable basis after some time when process of bottom formation or any indication of established uptrend is seen.
one thing to note, why i said its just a bounce/pullback rally. the bar made on 6th of may is from high of 10926 to low of 9780, so the last two days movement is still confined within this bar, and no breakout has occurred in any direction.
secondly the daily macd is bearish, so some large players might use the rally to exit, till or unless any crossover takes place.
on nifty also the picture is that of a pullback rally from the recent lows.
the first of the falling trendlines on daily charts is also now encountered so it may see resistance in this 5200-5230 kind of lvls going forward. even if it takes these resistances out there is less than 100 points upside potential.
hence one can use the current lvls for booking profits in longs in stocks/nifty. the daily charts medium term trend is down with a bearish macd. till the trend turns positive, one can stay out from short to medium term buying.
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Tuesday, May 11, 2010
mkt ahead...11th may 2010...
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8 comments:
Thank you..:)
Kept it mind and take decisions(!) or (copycat?).
Hm.."Picture abhi bakki hai" whether up or down.
Regards
Superb.... Your views are rocking in today's action.. cheers.
Thanks
thanx and regards.
-abhay r somkuwar.
Hi AB, pls put ur longer term veiws also
GG
bullish uptrend remains on long term charts gg sir.
Thanks Dear, Guruji should not address their students by "Sir". it should be ulta,
Thank you AB sir..
Cheers
Hi AB , in spite of Dow closing above 10.8 K , it has given up and followed by all markets now, where do you feel support should emerge or is it going to drift down without any LC like thing in Sept-Oct 08 and we cooly see 4600-4540 also, just a querry, since jan 08 losses, i strictly follow , intraday trades, but want to get out of MF (SIP) if trend is changing, pls reply as per ur convenient timing
gg, 'guruji' mhanlte ki ekdum dhotar/chashma/topi/coat/kathi wale gawatil shaleche ekhade typical mastar athavtat lolzzzz:)
iam also a student and learner of mkts like everyone else, just call me abhay or ab not sir/guruji...iam not too old or veteran in mkts also:)
take care!!!
p.s.: posted a dow/mkt view in 20th may 2010 thread, will update as and when necessary
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