To begin with, I apologize for not updating the blog for 2-3 weeks. Personal commitments!
5200 had held ever since we last had a talk and the Nifty had given sharp bounces ( 3 to be precise ) from that level. It was not rocket science to figure out that if 5200 is taken off, we can see a further fall. Which has happened in the last 3 sessions.
So what now?! Are we going to crack again to 4700-4800. I don't think so. The 200 dema lies close to 4950 odd levels and so does the channel support. Around 5000 Nifty one can look to start buying. If 4800 levels are seen in panic one can average. The reason why 4800 is a possibility and not a probability is the PIGS which are hogging the limelight. Greece is over and out, now its Spain and then it will be Portugal and Ireland.
Sentiment changes very fast and even though the secondary trend of the market ( the intermediate trend ) can go haywire for a brief time, the primary trend remains intact.Hence one shoud buy in dips. What are the chances that Europe will go down as the US did?! Jesse Livermore, the great trader, once said that If you have spent 9 mins reading economics, you have wasted 7 mins of your life. 2 mins I think is Nuisance change!
And experience tells me that even if we have to go down badly, it has to be preceded by Euphoria. People have to be heavily invested in the markets. Leverage has to be high. People are still anxious and not fully invested. Hence we will take care of Europe later.
For now, the call is to go long and add on dips.
DIVIS LAB ( one of my old favourites ) can give a 30% from here in 2-3 months. Buy on every dip.
Regards,
Rahul T.
No comments:
Post a Comment