Nifty opened with a gap down following global cues. Still weighing on our heads is the political uncertainty (this is one thing that coalition government has to live up with everyday!). “Fade the Gap trade” didn’t really take off and we drifted down in a narrow channel. I had earlier mentioned failure to hold on to 4530 will result in 4465. We tried regaining 4530 (we did 4538 at 11 a.m.) and failed. This again reminds us of an old principle of Technical Analysis; supports once penetrated reverse themselves to resistance! Anything below 4450 seriously warrants a look at your nifty longs. On the daily chart, at the risk of sounding too amateurish, I would like to point out that both the MACD Histogram and as well as the MACD lines have a traced a bullish divergence! Also if you take a closer look, then you would notice that the MACD lines are on the verge of giving a bullish crossover. Though armed with these positive signals one must always remember the advice of Martin.J.Pring “Always look at PRICE for confirmation!” I also look positive towards M&M and Telco to give a pullback considering the fact both were beaten down and need to pull themselves back to the value area! All this sounds to good to be true? Maybe it will maybe it wont considering, the fact we have those dreaded Inflation numbers hitting at u tomorrow. The Force is trying to keep em under 10!!!
"A ship in harbor is safe - but that is not what ships are for."
John Shedd
Hmmm…same with the traders…those who paper trade will never learn! Go out and trade albeit with a small quantity…But do Trade!!!
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