30 Jul 2008:- Whatever is to happen, will happen! I went wrong in my estimation about RBI Credit Policy effect on the Markets. yet not clear, why no positive effects even after leaving the bank rates un-touched. 25 bps increase across the board was expected. May be, bulls have been taken for a ride and the positive effects will trickle in later. Sensex has completed retracing about half the rise from the recent bottom. Bulls can watch 3 important levels now. Sensex must not break 1)Tuesday\\`s low of 13727. 2)two third correction level at 13387 and 3)recent low at 12515. Getting support at any of these levels and a subsequent rise will signal that the bear market has ended. Then, no question of Nifty 3600 or 2950 or 1200 or 0....lol...Even to go down to these levels we need some fresh strong bearish news. It is like pressurising a gas or liquid in a strong container. How far can you pressurise it? At certain level, any external pressure will not have any effect on it other than to break the container itself. Whereas, any mild positive news can give a much larger upward effect in our markets at current juncture. For Wednesday, other than expiry fever on some stocks, short covering will be evident. Those doubting Thomases, waiting on the wings, if they expect that they can catch the rock-bottom, it may neevr materialise and you will end up buying much higher. A prudent investor must build up his Portfolio slowly and steadily now, whenever there is a dip. For Wednesday:-
Supports: 13727-13629
Resistances: 14142-14395
Open: 14120
High: 14375
Low: 14027
Close: 14215
Good Luck!
Tom
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