Disclaimer: These are my personal thoughts and not trading advise. To view the full chart, right click on the thumbnail and open in new window.
One of my well-wishers contacted me off this blog, and made a statement to the effect that the market is following my charts. For which I could only respond by saying that the markets do not follow the charts. We use the charts to follow the market.
Given the weak global cues, the markets did open weak, and kept following the down sloping trendline. The positive thing is that the markets did not just surrender to the bearish pressure. It kept its head above water. As long as the Nifty remains above the blue line, it makes sense to remain with a bullish view.
No doubt, the turnovers were low. That can be explained by the fact that major players would be waiting for the results of the big daddy of Indian markets, Infosys.
The blue up sloping trendline is still holding the price. Even though the trend for the day was weak.
In any case, we have not witnessed the aggressive hammering, which normally is associated with extremely negative sentiment. Further, from other studies, we also see that the sentiment is already deeply negative. And normally, we do not see the market tanking when the sentiment is already at a low ebb. At present, the market still seems on course with its tryst with destiny.
Keep your trading plan in place, and be prepared for unpleasant surprises, as we had in the case of Hero Honda today.
No comments:
Post a Comment