Wednesday, October 13, 2010

Waiting for Infosys

As results season kicks off, markets do not seem to be unduly perturbed. Rather disappointing IIP numbers caused only a mild flutter in the market. In the USA, a weak unemployment report on Friday caused the market to move up - because bad news for the economy means more money printing, which means more money coming in the market, which means higher stock prices! Strange are the ways of the market, but that's the way it works.

Infosys reports on Friday, Oct 15. A bull market ignores all bad news. Therefore, short term traders should use any sudden dip as a buying opportunity. My own levels, which I had given on Bloomberg-Utv, were support on a closing basis at 6080 and resistance (also on a closing basis) at 6190. Between these two points, the Nifty is reallly in a narrow trading range.

Narrow trading ranges will eventually breakout, one way or the other. You just need to go with the direction of the breakout.

1 comment:

LIC Agent Noida said...

i don't know sir but markets never seems to work on the basis of fundamentals. it seems to be all the game of liqidity means technical.... Charts and volume.. nothing else. markets seems to be made to trape the common person.