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Market Outlook -
May 21,
2010 |
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Wall Street loses quite a bit of ground at 10186
as we write this Market Outlook; there is still
some trading left. Though it is off from the
day’s low, it is still vulnerable for further
fall having already lost more than 250 points
over the last close. Poor jobless data and the
ETF carnage paints a grim picture there. The
ETFs Exchange Traded Funds) have become
synonymous today with Exchange Traded Fear; the
most to suffer there are ETFs meant for emerging
markets.
The S&P 500 trades below both its 200-day
exponential and simple moving averages located
at 1102. This also caused a sell-off and is a
cause for some panic. The SGX May Nifty closed
at 4856 in the evening session with good volume.
Chances are we would see a gap down opening in
the market today. However, the levels between
4900 and 4876 are expected to offer good support
in case of any sell off, the SGX Nifty levels
notwithstanding.
However, if the 4856 gets broken then we can
expect 4839, 4828 and 4780 as significant
support levels. If downtrend gathers momentum it
could take the Nifty down to close to 4700
before the end of the May clearing next
Thursday.
On the upside, 4970 – 4990 would give major
resistance once the Nifty clears 4950. Above
5000, though a remote possibility in the short
term, the levels between 5019 and 5035 might
bring in a lot of supply pressure.
Rajat K. Bose |
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| Notes: |
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All prices relate to the NSE, unless otherwise mentioned. |
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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. |
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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. |
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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. |
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The analyst and his clients may or may not have positions in the securities mentioned above. |
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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. |
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Rajat K Bose
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