Monday, January 31, 2011

India: Weekly change in outlook.

Nifty and other broad indices opened in red after last week's fall. We were in bull run what happened?

Well the bull is taking rest and there were ample signs he send our way to let us know that he will be going to sleep and bears will be waking up from hibernation. The sectoral trend along with the State of Market showed that the trend is bearish.

Jokes apart the Nifty formation is very weak after coming into weekly Lev Sell last week. Link here.

Since this being the first weekly Lev sell in this run this can surely do some correction if we break the 5400 levels. The fibonacci support is at 5375 levels and after that the levels if 4800. See the Nifty weekly chart.



What to do here? Should we liquidate the holding?
Well what happens next is anybody's guess but I do feel that the indications are not bullish. One should hold only what shows real growth not just fancy projection from excel.

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