“Buy during Gloom and sell during BOOM” phrase aptly suits the markets today. The markets opened today with a deep GAP down coupled with lot of negativity due to the entire gamut of Global news with most of the analysts and investors predicting a deeper cut to the lows witnessed during the month of December last year.
As generally happens the markets generally does the opposite of what the general opinion is, similarly the markets defied all rumors and negativity to close in the positive zone today. The recovery today has been magical and has brought some silver lining among the bulls since the 4800 level has been once again held for time being.
Now with the indices holding to the 4800 mark which has been the case for the last one month all the theories of doom would be negated. And we could witness narrow momentum like in the past.
If the 4760 level is breached then the downward trend would work to the levels of 4600 easily which advises us for caution. All said today can be described as another brighter day for the investors and bulls at large that we have held on to the 4800 mark yet again.
Lets even wait and watch if there will be further rate cuts by the banks..!
(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)