MARKET TREND FOR TODAY
The Markets saw total mayhem and mindless activity yesterday as it fell sharply for the third day in a row to end the day with losses. The Rupee yo ended below the 63 levels, its worst single day fall in last 18 years which added fuel to the fire yesterday.
Today, this mayhem is likely to continue. However, if analysts have any role to play in such Markets which is grossly and overly over reacting as all the negatives stand clearly discounted at current levels, all that can be analysed that all factors, technical and fundamental stands discounted at these valuations. However, the Markets to blatantly flout and defy all technical and fundamental considerations.
The Markets stands nearly oversold. With today's negative opening on cards, the opening levels of the Markets will make it OVERSOLD once again. The RSI on the Daily Charts stand at 32.12 and continues to show bullish divergence as the Markets have made a new 14- day low but the RSI has not.
The derivative segment to have added massive open positions with NIFTY futures halved added over 15.66 lakh shares or over 8.89% in open interest which show very clearly that creation of shorts is in full swing.
Such situation forces us to think on one thing, if we leave both short term technical and fundamental issues aside. We are going back to year 1991 economic state of affairs, though not that bad. PM Manmohan Singh, who took over then as a Finance Minister worked wonders for the Indian Economy. The is a very sad fact to acknowledge that the same person, in capacity of a PM is able to do very little. The sad reason of this fact is that at that time, he had total political insulation under the reigns of the then PM PV Narsimha Rao. He could do what was economically correct.Today, the same man, with all his capabilities stands isolated between bunch of people who have put their political agenda ahead of the country's growth.
All and all we continue to maintain that the retail traders / investors should stay away until the Markets stabilizes. We would advice bargain hunting at lower levels as the Markets have been defying technicals. It is strongly advised to stay away from such Markets. Instead of making fresh purchases, liquidity should be maintained and preserved to protect current positions.
The Markets saw total mayhem and mindless activity yesterday as it fell sharply for the third day in a row to end the day with losses. The Rupee yo ended below the 63 levels, its worst single day fall in last 18 years which added fuel to the fire yesterday.
Today, this mayhem is likely to continue. However, if analysts have any role to play in such Markets which is grossly and overly over reacting as all the negatives stand clearly discounted at current levels, all that can be analysed that all factors, technical and fundamental stands discounted at these valuations. However, the Markets to blatantly flout and defy all technical and fundamental considerations.
The Markets stands nearly oversold. With today's negative opening on cards, the opening levels of the Markets will make it OVERSOLD once again. The RSI on the Daily Charts stand at 32.12 and continues to show bullish divergence as the Markets have made a new 14- day low but the RSI has not.
The derivative segment to have added massive open positions with NIFTY futures halved added over 15.66 lakh shares or over 8.89% in open interest which show very clearly that creation of shorts is in full swing.
Such situation forces us to think on one thing, if we leave both short term technical and fundamental issues aside. We are going back to year 1991 economic state of affairs, though not that bad. PM Manmohan Singh, who took over then as a Finance Minister worked wonders for the Indian Economy. The is a very sad fact to acknowledge that the same person, in capacity of a PM is able to do very little. The sad reason of this fact is that at that time, he had total political insulation under the reigns of the then PM PV Narsimha Rao. He could do what was economically correct.Today, the same man, with all his capabilities stands isolated between bunch of people who have put their political agenda ahead of the country's growth.
All and all we continue to maintain that the retail traders / investors should stay away until the Markets stabilizes. We would advice bargain hunting at lower levels as the Markets have been defying technicals. It is strongly advised to stay away from such Markets. Instead of making fresh purchases, liquidity should be maintained and preserved to protect current positions.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
