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Down moves ?

The Nifty as well as the Bank Nifty has narrow range days today, suggesting a breakout in either direction (up or down).
Art of Trade is comments which you can read here suggests that NTPC may be ready for bearish hed and shoulder breakdown.
My analysis seems to confirm these views. In NTPC a possible breakdown below 175 will have a target of 155 (CMP:180). But, the stock has lot of support at 165, has been showing strong relative strength, therefore, we may see lot of support before touching the target.

Infosys seems to be in a trading range between 1320 and 1260. A breakdown below 1260 gives 1200 as a target. There is chart support at 1200 anyway, so this may be a good level for support to come in.
I have a new post in the blog Practical Technical Analysis. The topic is: Bob Farrell’s ten rules of investing. I think you will enjoy reading it. Read it here

The wise are still worried

Microsoft Chief Executive Steve Ballmer sketched a dire portrait of the world economy on Friday, likening it to market conditions in 1837, 1873, and 1929, each of which involved bank failures, high unemployment, and a depression. You can read the full article here.
His warning of a protracted downturn that could become a depression comes amid a stock market that is down by more than 40 percent from its October 2007 peak, and housing prices in many metro areas that have been falling consistently since July 2006–a feat not equalled since the Great Depression.
“In my view, what we now have will be a fundamental economic reset,” he said. “The economy is going to have to re-establish itself at a level of spending that reflects the real value of underlying assets before we can all start growing again at a healthy rate.”

My Notes: Pimco’s Bill Gross says that a second wave of crisis may be coming. Well, as traders we can only try to go with the market. The current minor trend is UP so traders should be better off staying with the idea of buy on dips.

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