Monday, August 10, 2009

The Market does what it wants

Ignoring the US markets, our own Nifty refused to go up. Nifty futures finally closed the day below 4400. The market has seen three days of lower lows. If this is a dip, then three lower lows is the most a market should see. Then, tomorrow, tuesday should break the pattern of lower lows by either making a higher low, or, higher high or inside day, or bullish reversal day. Now, this is of course, not a rule, but an expectation. If we have a fourth day of losses, then the dip may lead to a deeper correction.

Whatever happens, one aspect of the market is visible: the Nifty is in a trading range between 4700 and 4100, roughly.

2 comments:

Junaid said...

SHANGHAI ACTING LIKE IT'S 2007 AGAIN, ANALYSTS SAY.

Full story can be read here.
http://www.marketwatch.com/story/shanghai-acting-like-its-2007-all-over-again-2009-08-09

Some Important notes from the topic.
1. The Chinese stock market "is clearly expensive now, but has not yet reached a full-blown bubble as in 2007. If a healthy market correction does not happen in the next few months, and the market continues to surge ahead, fundamental investors should start to worry," analysts headed by Vincent Chan said in the note, released Friday.

2.Most worrying, Shanghai's market turnover surged to a record 427 billion yuan ($62 billion) on July 29, a day that coincided with the debut of China State Construction Engineering Corp, which saw tremendous buying interest.

3. Chinese stock markets are overheated, average daily turnover on the Shenzhen Stock Exchange surpassed that of the Hong Kong Stock Exchange by 64% in July.

Bhupesh said...

ye market nahi hai,.. Ye FII's hai.. wohi control karte hai saare markets ko