Whew ...........what a day ! A gap down opening and what a recovery, thanks to some short covering and bottom fishing. Well the opening was right at the point I had metioned yesterday arnd 3800 levels ...... tested the 3790 prior low and bounced back ..... and once it crossed 3900 and sensex crossed its high and open which were the same,it zoomed . The last few gap down openings have been like a yoyo, so that's something to ponder about, as it indicates the strength or the buying that's visible at lower levels. Now again another important session lies ahead tomorrow, the question now is that can we bring down the City of Troy i.e. 4100 levels and close above it. If that happens, I won't be surprised to see 4300-4400 levels before this series expire.
Well all depends on global cues, as Inflation figures doesn't paint any clearer picture. The positive from today is the way the markets recovered today, but that brings up another question. Can the momentum be maintained and will there be follow up buying ? What it seems that If once the 4100 levels are breached, expect more short covering. The indicators are indicating upside momentum, but they sometimes lag. Lets see how the market plays it, and let the market itself decide its own direction.
Happy trading and cheers,
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2 comments:
I have HIDL @300, how long should i hold
Well .... HDIL has a resistance zone arnd 250-260 if it crosses and closes above that, we can expect further upside momentum. A far as supports are concerned none are visible as it's at all time low,and it's in a kind of free falling mode, so I would'nt suggest you to add to your existing position,cos I don't believe in catching a falling knife. So let's see how it performs from here, will keep tracking it, as soon as I see something intresting, will let you know. Thanx for the query.
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