The Sensex is precariously near the October low while the Nifty seems a little 'safer' ! ( Ooops, I thought the word 'safe' related to ancient text!)
Well, the charts are telling us that revisiting the Oct lows is a high possibility , but whether they will break or not is to be seen. Personally my view is that 'Market Bottoms' are made only in Panics - real panics. It may be in the form of a Scam or War or such external event. And obviously we can't predict such events. which leaves us guessing.
( Mind you , the Oct bottom WAS such an event and hence I am still holding on the Sensex 7700 / Nifty 2252 as the 'bottom')
In the above chart you may have observed that while in the earlier tests of the 2500 Nifty levels, the MACD was 'supporting' the oversold oscillators , in the current situation, the MACD is suggesting a 'momentum' sell and so we maintain our bearish stance.
Consider 2500 as the crucial medium term support which if broken can lead us to a 're-test' near the earlier lows . Till then we remain in 'No Man's Land'!!!
Happy Trading !!
CA Rajiv D Khatlawala
Head of Research
Jhaveri Securities Ltd.
No comments:
Post a Comment