Published on Tue, Feb 09, 2010 at 08:39 | Source : CNBC-TV18
Updated at Tue, Feb 09, 2010 at 10:56
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Dealers bet on mkt retracing on bad global cues
The buzz is that still you need to be cautious at these levels. You may see a bit of pullback rally from the 200 DMA of 4,650 because that is where you have seen some bit of buying as well and yesterday it was some case of short covering as well. CNBC-TV18’s Nimesh Shah reports.
After the tremendous recovery that we saw yesterday, this morning we are starting off with weakish global cues. Commenting on it, Technical Analyst Ashwani Gujral said that some kind of positive divergences are building up on the charts. "This means that momentum on the downside is now reducing."
According to Gujral, when that happens, some sort of temporary pullback will begin to take shape. He further said, "I suspect this to be the case with most Asian markets. They have probably decided to reject global or US cues for the moment."
Hence, he said, we could have a rally that takes back towards 4,900-4,950 an attempt or rather a pause in the fall. He is of the view that this breather could continue for a few days before the market decides what to do again.
"I think 4,900-4,950 is that decision point. In case we cross 4,950, then an intermediate uptrend would again resume in case we are not able to cross it and the declines will restart."
After the tremendous recovery that we saw yesterday, this morning we are starting off with weakish global cues. Commenting on it, Technical Analyst Ashwani Gujral said that some kind of positive divergences are building up on the charts. "This means that momentum on the downside is now reducing."
