|
German short sale ban hits the Euro, the
currency hits new 4-year low, the financials are
selling off in Australia. Earlier Germany is
cracking down on short sellers: panic button has
been depressed. The Dow closes 115 points to
10511 while Gold has just inched up to $1215.
Our man SGX May Nifty has taken a nosedive: as
we write this Market Outlook, it is down nearly
80 points at 4985.50 on moderate volume. Another
panic likely, it seems.
If the Nifty were to open today below 5000, then
the range between 4997 and 4982 would offer
support to the Nifty, the SGX May Nifty levels
notwithstanding. Once this zone
just-referred-above sinks in, the next support
would be at 4966, 4943 and 4915 before it tests
the 200-day exponential moving average at 4898.
The signal for a trend change would come only if
the Nifty now closes below 4880 and stays there
for more than two or three trading sessions. It
would signal a strong intermediate downtrend.
On the upside, if the Nifty manages to stay
afloat above 5000 level then immediate
resistance would be at 5020, then 5037, 5053 and
5065. Unless 5085 is decisively crossed all
rallies would be used by traders to press sales.
Only when we clear the Nifty levels of 5120 –
5125 firmly again the bulls would gain some
initiative back. Now, they are fighting on a
rival, fighting for survival.
Rajat K. Bose |
| * |
All prices relate to the NSE, unless otherwise mentioned. |
| * |
Stop-loss levels are given so that there is a level below/above, which the market will tell us that the call has gone wrong. Stop-loss is an essential risk control mechanism; it should always be there. |
| * |
Book, at least, part profits when the prices reach their targets; if you continue to hold on to positions then use trailing stops to lock in your profits. |
| * |
Don't chase a stock, if you are unable to buy a stock because it hits circuit levels on successive days, don't buy that. |
| * |
The analyst and his clients may or may not have positions in the securities mentioned above. |
| * |
Trading involves considerable risk. Trade at your own risk to the extent you are comfortable. The analyst shall not be responsible for any losses incurred for acting on these
recommendations. |
|
