Hi All,
Nifty ended the
day up by 146 points at 7368, thus closing the gap on daily charts which is a
good sign, however crossing 7400 will accelerate the up move further.
As mentioned Nifty future discount which can
be an alarming signal and a huge rise of more than 8% from the bottom in just 2-3
trading days can result in to a breather for Nifty in coming days.
Today’s rally was more on account of RBI’s decision to allow easier
capital recognition for banks (http://economictimes.indiatimes.com/news/economy/policy/rbi-allows-easier-capital-recognition-norms-for-banks/articleshow/51217332.cms)
Also there are expectations and rumours
(flashed on CNBC) about a Rate cut by RBI in couple of days which helped markets
to gain this extra mile in 2 days.
With rule, Buy the rumour sell the Fact,
after the rate cut, if any, a fall in Nifty, at least temporarily cannot be
ruled out.....
The plan of action now needs to be very
cautious after such a steep rise in prices. 7390-7400 will now act as the
resistance for Nifty and the same was almost tested today with the high of 7380.
Any trade should not be take without a
confirmation on charts / events/news etc.
Cheers
No comments:
Post a Comment