NIFTY; an expectation

On daily basis spot nifty has given a double top confirmation (5750) from one angle and from another angle moving within a secondary bearish channel.

One suggests fast downward price movement and other suggest lower low and lower hi. From both angles can expect lower prices.

If we see last few days movement after giving the confirmation settling below 5750 on 14^th Jan’2011 unable to attract fall rather holds the area and moved within a range of 5625-5750.  On 25^th Jan broke resistance of 5750, hits nearer resistance of 5800, but unable to sustain and moved down and closed on sup of 5680 which indicates weakness.

Now what can expect, sup of 5580/85 (declining lower line of channel, ‘ll be lower with time) need to break instantly for a sharply downward move otherwise to be within a downward channel, bit sideways within a channel forming lower highs and lower lows, either way 5000/5100 seems achievable.

This downward price move is likely a balancing of value or cooling overpriced stocks in global scenario. 

market: a look b a c k

Thursday, 01July 2008, (DOW, what is next), I wrote and first posted in Blog after getting a suggestion from our senior Mr Venkat……………..thank u sir……….

Now at present juncture DOWJONES covered its losses after the fall from the area it given a technical confirmation (pls go through the page).

Now the question is where it’s heading, for a new high, near the all time high or what?

QE is giving enough support, banks and corporates are in good shape but housing sector still down, employment also not gathering pace, unemployed are more, as a whole lack of any solid clue of growth but for hope nothing will worsen and huge fund with fund managers, ETFs’, index funds, it’s a rally as market is showing surprising strength (corporate earnings on the way).

Worrying situation is global geopolitical condition, economic power shifting leads to currency war even points to geopolitical tension, which can be worsen anytime and can make panicked. Soaring commodity prices (one reason is mother’s slap for spoiling balance) threatening inflation and in emerging countries it’s already showing red eye and pressuring growth.

Surprisingly all this points attracting investment in COMMODITIES, specially in metal sector. So wouldn't it be like ‘Hero Honda Ad’…… ‘Fill It and Forget It’(?).