For the tenth day, the Nifty remains inside a narrow range between 2550 and 2750.
A move out of this range is likely to give us a trending move. Then, a close above 2755 is a signal to buy. Below 2555, we should expect lower levels. Inside this range there are few opportunities for trading.
Investors and Position Traders ask the question: Is it time to buy ? The asnwer is: we do not have any patterns yet that suggest a base buliding process has been completed. Now it is quite possible that the current move in the Nifty between 2250 and 3250 may be part of a basing process. We will know this only when the Index moves abov 3250. We will get some early warning. A move above the current trading range will represent such a warning. Till we do have convincing proof of bottoming out, it is wise to stay away. You can nibble at stocks that you like - blue chips only. But, if you have spare cash, keep it spare.
Less bad is Good (from fullermoney.com)
Bad news can be taken in stride if it is not as bad as investors had expected. Good news can disappoint if investors were expecting better. If the economy is only as bad as investors currently expect, then stocks should begin to stabilize in our view. Only if the economy is worse than expected, despite policymakers' efforts, do we see a break below the 2002 lows (in the USA).