Tuesday, June 29, 2010

Doom for the Markets?

Does this one chart line spell doom for the markets?


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The Nifty has began a correction. While trend indicators have turned down, the chances are that 5240 support will not hold. We are now looking at a correction of the 4800 - 5365 up move. There is strong support around the 5150 area.

U.S. markets are on the verge of breaking down from the lows made in Feb - 1040. This is equivalent to 4675 low in the Nifty which was made in feb. Then, by comparison, the Indian markets can fall a lot more to 'catch up'.

1 comment:

bkm said...

Sir I was impressed by your views on CNBC TV and used to wait till Mr. Udayan asks you for comments. What I have observed of him is that he has reserved certain persons for a bullish Market and others for the downfall of the market, he calls you whenever there is downtrend. But your blog reflects your trend to be exactly following the Market wherever it goes , absolutely no BIAS.

Doom for the market??? that too upto 4675 or even more... time would say...

But I compared DOW with Europe, Shanghai, Hangseng, Brazil, and India... what I find is during 2009 May Elections result we gained 600 nifty pts. , which are still pending .

Then, by comparison, the Indian markets can fall a lot more to 'catch up'. Your last sentence says the perfect answer for Indian Market. We lagged after 2007(aug.) of DOW till 2008(Jan) and caught up with DOW.

I also appreciate your view that " I am bullish" , the market has to go up , after every correction which is a dip.

Always awaiting your views on Blog or on news.