Monday, January 10, 2011

The Trend is Down

I hope readers have been listening to me on ET Now, every morning. I have sufficient time to explain the Nifty trend, and this has been fairly consistent. Last week, I had advised taking of partial profits on Nifty, first at 6080 and then at 6150. I had suggested that 6130 should be used as a stop loss for any long positions.

On Friday morning, I explained that technicals have deterioriated sharply. The Nifty has failed to cross its previous highs, thus setting up a three drives pattern - in which three moves to the top or bottom fail. I ahd given a level of 6045 in Nifty Futures below which we become short sellers. I had also warned against entering mid caps and small caps.

Once 5940 was taken out, the intermediate trend turned down. Now, we are in this down trend, so we have to go with the flow.

If you are not getting ET Now on your cable/satellite then you should take the channel as an add-on. It is well worth the extra cost of 10 rupees or so per month.

4 comments:

men said...

Dear Mr. Sudarshan,
Now days your suggestions are coming crisp and clear, with further clarification in case of doubt, Congratulations on the same. Any chance of you coming during the bnsn time soon?
Regards,

stoxtrends said...

Sir,how have u calculated 5940 as medium-term level?

tushki said...

hello sir

So sir at which level do you expect the Nifty to bounce back from?

And do you tink Reliance will outperform?

mps said...

I have the ET Now channel but even then it is not possible to listen to the wholw program everyday & I have to miss substantial parts of it due to household compulsions. I had earlier suggested that your subscribers can benefit from your comments on ET Now if the summary of your observations is posted in their message centre everyday by 9 am. So even if I miss a large part of the program I get to know at least YOUR views through trend analyser.
I hope you will consider it favourably.
MPSingh