The RBI's move to increase CRR (Cash Reserve Ratio) by 0.75% has been 'absorbed' by the market. However this may be treated as a signal of increase in interest rates in coming times. The clear indication on this will be probably given in the budget.
On a MONTHLY basis, the January month has closed on a weak not. In fact on monthly charts there is what we call the 'Bearish engulfing' candlestick pattern. Also if one observes the monthly chart, one would agree that the recent rise -since last September- has been with declining volumes...
How I interpret this monthly price-volume relation is that the rise since Sept 09 was more due to 'trading and speculative' activity rather than 'long term' investment buying. (Do tell me if you have any other interpretation)
So for the coming week, one should expect a 'technical bounce' towards 4940 - 4990 where the bulls may 'take profit'. And the 'Dubai support' still hold - on closing.... If it breaks, re-start selling ....
Happy trading !
CA Rajiv D Khatlawala
ValueTrade Academy Pvt Ltd.
1 comment:
Yes, Market has already entered in BEARISH zone. Every correction should be used to reduce long. Avoid intraday trading OR to be done with strict STOPLOSS.
Good opportunity to invest in strong fundamental scripts on every dip.
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