Wednesday, September 7, 2011

Morning View sept 7

Markets all over the world are rejoicing the intraday rally in U.S. markets on Tuesday. The S&P saw a low of 1135 in premarket trading, then went on the close at 1165, quite impressive. It does appear that Indian markets quite often forecast what the U.S. will do. Notice the sharp late afternoon rally in the Nifty when it crossed 5000 (day's high, till then) to close at 5060.

Gold is down, while Equities are up. World is now in the 'risk on' phase. How long this will last is anybody's guess. For short term traders, the Nifty has closed above its 20 day MA. That is a sign of strength. It is usually wise to go with the trend, in this case the short term trend is up.

Reliance is now touching its 50 day MA, as pointed out by Sudhin. The stock is liekly to outperform, should be treated as a buy on dips security.

2 comments:

bkmm said...

Sudarshanji,
"It does appear that Indian markets quite often forecast what the U.S. will do"...
This is not one off, but is happening quite often.... the reason i feel is because many indians are part of technical and it team globally (US & Europe), who get hints which they pass over to local indians.

"What is your ATM"
One of the most buzzing stock is Chambal ... making new highs recently in such a down market... pl. suggest your views ....

regards,
bkm modi.

rocky said...

hello sir, i want to clarify sthing like in real time technical analysis the chart showing 5 min, 15 min and so-on suppose if we took a position @ 9;25 and position going against our favour so we have to wait till 9;30 in span of 4 min the prices can be moved an where so how to tackle this situation. please explain sir