Shucks… ran out of idea for header…

Being late for posting is becoming my habit only – actually my brother, his wify and kids are here and I run out of time in the evenings. I apologise for this behaviour of mine and will try to post be evening. Actually Sangat also affects – Jaggu (I am referring to you).

The battle was finally lost by the bears yesterday – they did attempt to take the markets lower – but I guess the bulls were smart enough to hold on to the levels – and that created short covering. If we do have some more steam left – then that along with the short covering should still carry us to a little better levels. The fall in inflation is much beyond the short term expectations and that is what would have given steam for the upswing yesterday. There are many like me who have a lot to gain if we go to higher levels. My advise would be – be patient – do not start taking out the money at this level. we are surely to see better times than this. The crude is down to 36$ a barrel. We will propel forward on these news – crude, inflation, expiry next week and elections alone. The global cues will create havoc with this little plan of mine but that may happen still.

Infact the global cues still do not point to any particular direction and the confusion remains. most of the movement is not in a particular direction with conviction. One index is up the second down and that to on or about the flat line most of the times. The bad news abroad is just not finishing. The Europe – my favourite punching bag – that takes cues from Asia and US both remains to be number one in the confused state. FTSE up 0.15%, DAX up 1.02% and CAC 0.24%. So Bush finally decided not to go ahead with his so called dishing out money to the poor Auto Makers and is now considering ‘Orderly’ auto bankruptcy. The signal is without any doubt points towards still deteriorating economy. The US markets made an attempt to remain around the zero level but failed in doing so by the mid session and closed red like in chilly red. Dow down 2.49%, Nasdaq down 1.71% and S&P down 2.12%. Now that would have and did effect the opening in Asia. But the markets have since recovered from the lows. Nikkei is now only 0.21% down, Hang Seng down 1.54% and Strait Times in green 0.55%.

I am just crazily confused as far as the candles are concerned. Bearish engulfing one day followed by bullish engulfing the second day – what do you expect me to say actually? I am confused but then we can talk about the non confusing issues – like the Bollinger bands are widening and the widening is with the candles on the upper limit – so we may see the continuation of uptrend still. 5 EMA is still above the 20 EMA. Volumes were better than average. MACD divergence into the positive side – so far so good. RSI looking up and good again. TRIX as good as ever. Slow Stochastic shows the red line about to attempt to cross the blue line again – again it might remain in this overbought state for a day or so.

Pivot data…
R3 3222 against 3209 on yesterday
R2 3168
R1 3114
Pivot 3018 against 2991 on yesterday
S1 2964
S2 2868
S3 2814 against 2773 on yesterday
Projected High Range 3066 to 3141
Projected Low Range 3003 to 2928
Fib Projected High 3112
Fib Projected Low 2881

Notice the Fib projected high remains same today but the pivot is above 3000 and R3 moved in 3200 levels.

FootNote: I will no longer be posting the articles on TheIndianStocks as self and Aryan – the host of the site has a difference of opinion that does not have a middle ground.