This is perhaps the questions in most of my readers mind. May be this is preceded by the question "Iss level par buy Karu ya na karu??"
Well if you have read the last chapter of my book (Importance of Emotional Maturity) you would have by now realized that most investors (may be more than 90%) have what we may call a "BUYING BIAS".
Even when the trend is down, traders and investors spend most of their time searching for buy signals rather than sell signals. It's human psychology!
Well, there is something for all the perennial Bulls. Even in this down trending market, we do have stocks which are likely to rise , irrespective of the market direction.
One such 'defensive' stock is Infosys Tech. It is currently undergoing a 'correction' of its recent upmove - notice the negative divergence on the RSI.
I expect this correction to get completed around Rs 1675-1700 levels. This will correspond with the 50% retracement of the current upmove and the RSI going in oversold region. (Just recapitulate the characteristics of a divergence on RSI on page 110 of my book)
The overall Nifty has broken crucial supports as expected and has closed weak. Notwithstanding some corrective move on upsides, I expect it to go further downwards.
Happy Trading (and stock picking!)
CA Rajiv D Khatlawala
3 comments:
Hello Rajiv,
Do you have any technical target (price/time, say for NIFTY) for the on going correction started in January 2008 ?
Thanks in advance.
With Regards,
Praveen Shamain
Considering the fact that the Nifty retraced only 38.20% of it's fall of Jan08 and has started falling again, I would target initially 4125 and then sub-4000 levels in the medium term (4-6 weeks)...
Thanks for the reply, Mr. Rajiv.
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