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 was suggested yesterday, on 12 February, we are in a correction. It was also anticipated that the correction could last for a week or so. But the speed at which the correction has moved, it must have surprised many market players. I have no qualms in admitting that it has surprised me. Is the correction over? Yes, it does seem so, from the position on the chart.
It was also suggested, that we could see an important support level being tested today. And it has been. Thus, the 4000 level on the Nifty becomes a very important level. If that level breaks, then we could assume that the bear run has started.
Further, on the hourly chart, a higher top higher bottom pattern has emerged which lead me to believe that the correction could be over.
We had also asked a question yesterday – “Does it mean that the Great Bull Run of the Indian stock market is over?” and had answered “It does not seem so. Not as yet.” The fact remains that the next six weeks are going to be news driven, and therefore, volatility is going to be very high.
And as suggested again and again, when volatility is increasing, it is imperative that trading should not be overleveraged and to remain hedged at the same time.
Let wisdom prevail.
3 comments:
Dear sir,
What will be the effect of CRR hike.
Rajeev
Banks are effected first off, as money circulation is tightened.
Then comes industry, as money supply becomes relatively scarce.
This type of action is normally resorted to by the Reserve Bank, when it is concerned about inflation.
Sirji, again a lower low has been made now (its 1115 am, feb 14), so is correction still on ??
reg
ketan
Post a Comment