These are my personal musings. These are not in any way meant to be trading advise. To view the full chart, right click and open in a new window.
As suggested on Friday, there was follow up weakness today, and the Nifty has indeed gone into a short term downtrend. Actually, no one is willing to take a directional call on the market, with the FOMC meeting coming up ahead. For those who are not aware, the FOMC meet is where the Govt. of USA decides whether or not to raise interest rates.
The boogie of interest rates has always loomed large on the markets, with most major Governments raising interest rates, thereby making borrowing of capital more expensive.
The charts too are reflecting the uncertainty in players’ minds. I have highlighted the sideways movement of the Nifty, where it played out for most of the day. Therefore, the price action on Thursday and Friday will have a most crucial bearing on the future of the Indian markets.
With the price action of the past, we could expect support marked out at the 3050 to 3060 level.
Now is the time, when patience will pay rich dividends.
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