Since the day Nifty closed below 200 DMA (SMA at 5630 & EMA at 5650) it became evident that market will free-fall for some more days in the coming sessions.
We mentioned in our last issue of market outlook that all rise should be used for exiting longs and traders may either remain short or stay out rather than keeping longs.
So had anybody followed our advice must be in good profit now!
Until Nifty claw back to 200 DMA and close the same, market will in the full grip of bears and they will pul in down on the slightest of the provocation.
Although its quite difficult to predict a fix time-frame for the market movements but its quite clear that market may not stabilize in the near future so easily.
Until our dear Finance Minister presents a very good budget we will not find any breather from him.
We are struggling a lot even on inflation front which is hovering in 2 digit mark for past many months.
The rise of crude is also a matter of great concern for the government which is treading a rough path these days.
Crude will keep inflation high more few more months and our government is unable to find a solution for this so easily.
If government allow dollar to fall lower vs rupee like it did during the year 2007-8 than it may nullify the crude rally but it will have adverse effect on exporters and IT firms and will dwindle their earnings.
This will also not a good sign for the ones who love IT firms like Infosys, Wipro, TCS etc to name a few.
Overall scenario for our market is quite bleak and we must see lows of 5000-4800 for Nifty in the days to come.
Only very strong wave of positive news can save us some grace.
We mentioned in our last issue of market outlook that all rise should be used for exiting longs and traders may either remain short or stay out rather than keeping longs.
So had anybody followed our advice must be in good profit now!
Until Nifty claw back to 200 DMA and close the same, market will in the full grip of bears and they will pul in down on the slightest of the provocation.
Although its quite difficult to predict a fix time-frame for the market movements but its quite clear that market may not stabilize in the near future so easily.
Until our dear Finance Minister presents a very good budget we will not find any breather from him.
We are struggling a lot even on inflation front which is hovering in 2 digit mark for past many months.
The rise of crude is also a matter of great concern for the government which is treading a rough path these days.
Crude will keep inflation high more few more months and our government is unable to find a solution for this so easily.
If government allow dollar to fall lower vs rupee like it did during the year 2007-8 than it may nullify the crude rally but it will have adverse effect on exporters and IT firms and will dwindle their earnings.
This will also not a good sign for the ones who love IT firms like Infosys, Wipro, TCS etc to name a few.
Overall scenario for our market is quite bleak and we must see lows of 5000-4800 for Nifty in the days to come.
Only very strong wave of positive news can save us some grace.
Nifty Pivot 5411
Support 5355-5304
Resistance 5434-5484
Support 5355-5304
Resistance 5434-5484
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