Sunday, June 7, 2009

Weekend Views On Nifty!!!

Not putting any charts this week. Nothing much has changed over the week, Nifty has resistance at 4650/75 (probably we might just gap it up!) With Nifty’s dream run this is a possibility. As for the supports 4450 is still good enuff, though for the aggressive and momentum players the bar is raised to 4550 as their stop now.



Divergence Players have got plenty of Negative Divergence happening on the Daily chart and also on the hourly’s but like I always say that playing Divergence is a game of PATIENCE; so wait for the Price to Confirm!



As regards to S&P 500; it’s in a state of suspended animation near its 200 periods MA. With so many conflicting signals emanating S&P 500 has decided to stay put in a tight range. A convincing break above $945/50 would surge the world markets further along with it (S&P 500 still has to a lot of catching to do vis a vis developing markets!)



I just mentioned above the word conflicting signals, by that I meant all those reports and data coming about the state of the economy. Here’s an interesting take on this by Pradeep Bonde:

If you are losing sleep over issues like:

US deficit

Inflation

Hyperinflation

Deflation

Dollar depreciation/appreciation

aging population

health-care cost inflation

underfunded pension

geopolitics

Stop trading and start running for the job of President of USA

You can read Pradeep Bonde here!

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