Saturday, September 20, 2008

NIFTY ! some temporary relief?

Nifty moved almost 10% from it'a low of 3800 of thursday. Many traders and investors may have already concluded the end of the bearish phase.

But we technicans are too rigid ! I am still tempted to maintain that a ban or curb on short selling by regulatory bodies the world over cannot be a reason for a long term investor to jump in with his money ( Also, I wonder why they did not have a 'buying long' ban in January ????)

Look at it this way - why should regulatory bodies need to do such a thing as curbing short selling ? simply, because they fear that, if left to itself, the markets may witness further selling pressure, which is the result of an already grown financial crises the world over.

And I have my doubt whether this will settle down soon. Our downtrend is still 'young' - only 9 months old and we may still have another quarter to go before we see light!!

The chart below is more or less self explanatory



Happy trading !!

CA RAjiv D Khatlawala

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