Thursday, 5th March, 2009
The market is expecting something good on the Banking Front, and that can only be the rate cuts by RBI. also thats the last positive news left in the market, that will create a sense of optimism. and here it comes, a big green day for Indian Markets.
My choice is to go blindly short on all highs that we make tomorrow, and keep cool with courage. market definitely weak, coz a market that needs news to run, never runs far away, because it doesnt have legs of its own.
Some Technical Talks
SMR, at present @30 lvl, is reaching its Support Zone of 25-20 lvl, from where it will surely bounce and that bounce will have deep red impact on the market. all world markets reaching their overbought zone and tomorrow we will reach there as well, i.e., overbought territory
Bollinger Band theory is also expecting a green day tomorrow and it shud b a big one, coz market values are touching the lower band of bollinger, from where a bounce is very much expected.
Stochastics & RSI, both in oversold zones, and suggesting a sharp upmove during day or a big gap up opening.
%R, suggesting that the market will go for a sharp gap up and a good stable upmove.
MACD, however is in negative bearish territory and suggesting that the market should be left at the earliest. and this is something that is giving me a good signal to go short at every rise, with a SL at 2762 Closing basis for tomorrow
A & D, also suggesting the same as MACD
KINKO, one of my favourites also suggesting that the great downfall started on 27.02.2009, and it wont come to an end so easily.
GMMA, also goin the negative way
ADIX, also suggesting that the sellers are getting more hold on the market than the buyers. so buying in this marklet is not a wise option.
Average True Range, also going the shorters way suggesting a panic buying , or a panic selling in the market soon. Logically paninc buying wont happen, so the other option which has the logiocal reasoning as well, is panic selling very soon to happen in market.
some more indicators suggesting a grand feast for the shorters on cards.
BUT, for 2mrw, we must see off 2700 minimum and 2740 is a hurdle to cross. all in all green day on cards for 2mrw.
STRATEGY
Since i m a basic player, i would advice to short at possible highs than to go long in anticipation. and if u feel that some steam is still left in market then better go just 50% short and save some shorts for Friday.
Happy trading
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