Monday, July 28, 2008

Its lonely............ being one of the only green

So we did do it - we closed green. Except Nikkei all the other major indices in Asia, Europe and US ended Red. In Asia Nikkei closed .14% in green, Hang Seng .24% in red and Strait Times .43% in red. Europe had a worst day than this - FTSE closed .75 in red, the Dax 0.47% in red and CAC 1.2% in red. The US had opened a flat but then dropped and never looked up again. There may be a recovery later tonight but as of now it does not seem so. Dow is at the moment 1.08% in red, NASDAQ .89 per cent in red and S&P 500.65 per cent in red. All this has been attributed to rise in oil prices and the drop in the earnings of some companies.

On nifty today there was a small white candle. this is nearly what I had expected - a flat to low opening with a white candle. Unfortunately, this candle does not solve the purpose that I had wanted it to do. In fact on the contrary the candle would ordinarily signal a continuation of the downtrend. The bulls could just not managed to close the index up a little bit higher up. With the expiry around the corner there may be some strength as the shorts are covered. But after that there may be blood on the streets again. We have in fact pulled quite a feat by showing this white candle as all other indices were in the red.

Well as to how I read rest of the indications -- MACD is up and bullish,RSI is bullish, the TRIX is bullish and shows an uptrend, StochRSI has moved down from its extreme overbought positions and TRIN as given by jaggu is bullish. So I would say make hay till the sun shines but remain extremely cautious of the longs you intend carrying to the next month. If we do drop by the end of this week expect levels definitely below 3800.

The results so far have been good for most of the companies. There is another factor that may contribute to tomorrow's trade and that there is this Reddy's angle. In fact most of the day today has been spent by the idiot box debating whether or not there is likely to be a hike tomorrow. What happens tomorrow remains to be seen but as far as I am concerned I do hope and expect another white candle that may signal a bullish uptrend next few days negating what I have written about the candle being a continuation pattern today.

Best of luck and hope you all make tons of money.



S S Cheema said...

US closed average 2% down and Asia opens and remains down by 2 odd %.

Uma said...

India likely to be in this range, growth % still beat inflation