Hi Friends
Yesterday we saw one of the worst days since my entry into the stock markets. I term it as the worst day (even worst then any other lower circuit in the markets before) because the games which the nifty was playing. It kept on breaking the supports and hitting the resistance for numerous occassions during the trading day and the traders ARE RELUCTANT TO HOLD ON TO ANY POSITION, BE IT SHORTS OR LONGS. The volumes are still a concern for me as around 60000 crore volume on Nifty is atleast 35-40% less then a normal day trading participation of 95-100 thousand crores. It would be very difficult for the markets to go up untill and unless the domestic and foreing funds take long positions and most importantly hold them. What is happening right now is that whatever positions the traders are taking they are booking it instantly.. ie: not carrying their longs or shorts which makes the stop loss hit on both the sides and eventually selling pressure is seen. My view is that we have to soon go past 5350-5360 mark and stay above it with good volumes to be under the wraps of the bulls. On the other side, if the markets breaks the 200 DMA again which is around 4890 levels... then we are in a BEAR PHASE with the heavy DOWNSIDE.
Asian Markets are trading strong and DOW also ended onj positive note after a weak opening hence we can open positive today but have to see weather we are able to sustain the highs or make new highs for the day or not.
I am still long and will wait for today... If we break support levels today as well then I would advice an EXIT on ALL LONGS...
Happy Investing
Investomaniac
JAIDADIKI
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