Thursday, July 17, 2008

Is this rally for real? ............ Your take...?

A wonderful day in green after so many depressing days - but the question remains - is it for real? I don't know - I will not trust till 22nd come what may - Our markets are crazy enough to swing a few hundred Nifty points on whether this politician has to sit on the chair or the other one will sit. Someone I spoke to earlier this morning says the range around the proving of majority by Congress is 1500 points - I said I do not get what he wanted to say - He meant exactly what he said. The markets can either run up this much or drop this much - depending on what the news is. That is what India shining is all about. Chidu Uncle may already be sitting on the right side (he is active in stocks i am told) - only problem is that you and me have to take a guess and the upside may be wonderful - but the downside can kill anyone.

We have the inflation figures to come out today - then there is the weekend - and then whether the majority can be proved in the political market place. Also throw in the fact that after a long time the oil prices are below 130$ and that is some feat - for how long will they remain below this figure will however remain to be seen.

In any case the way the Europeans have ended and the US traded the green and ended green - a green opening is certain though Asia is yet to open. If we have a gap up opening - as I think there is likely to be a correction there after - this will not go well and this is what I feel would happen. A white candle today will however go a long way to shine the way a little after the kind of bad sultry days we have been having for so long. MACD and RSI are looking good - both bullish. Slow stochastic is in oversold zone and TRIX is looking up. The problem area is the StochRSI is in overbought zone again and the turbulence on the political front that is expected to keep affecting us. TRIN - I will leave it to Jaggu as always.

I too am waiting eagerly for the day today. It would be interesting to see the bulls and bears fight it out. Best of luck.