Wednesday, July 23, 2008

Singh is King.........

Despite of all the apprehensions and misgiving's the UPA managed to survive the vote of trust in the Parliament. So far so good. On the international front, as a norm now Europe closed confused with one index in red and the other in green. The US on the other hand was comfortably into the green ending 1% and higher up. Dow was up 1.18%, NASDAQ up 1.07% and S&P 500 up 1.35%. Taking cues from the US Asia too has opened green. As I write Nikkei is up 1.07% and the Straits Times is up 1.55%. as far as US is concerned-- the stock market posted solid gains on Tuesday, after a late day surge led by financial sector helped investors shrug off worse than expected earnings reports from major technical and financial firms. A drop in crude prices, thanks to the easing of tropical storms threat, also helped bring buyers to the table. Tuesday had earlier to looked like US is going to have one of the worst session as the stocks had opened .9% lower on an average but the investors took this as an opportunity to buy on dips and pushed the stocks higher.

And finely despite of all my misgivings the three white soldiers in the candles broke the resistance as listed yesterday and ended higher closing at 4240. The next resistance kicks in at 4315-- and once broken the next level should be 4489.the indicators are all good -- MACD good, RSI bullish, slow stochastic good, TRIX good and TRIN listed by jaggu bullish. going by all these indicators we have some steam left to go up. So enjoy the ride as long as it lasts. The volumes too are not bad.

There is now no doubt that with the bullish indications we have - we will continue going up for some time. But on the cautious side just for the sake of it now that the government did not fall may be the classic case of buy an anticipation and sell on news. Other than this - as of now there is nothing against the move that has been seen and breaking off 4216 level will go a long way supporting the bullish trend. I would keep an eye on this level today too -- for that just in case scenario.

Best of luck to everyone.