Hi GM All,
Yesterday turned out to be an eye opener session for the participants in general thanks to the Mid cap space, where most of the stocks lost 6-10% in their values courtesy the HDIL scare.
The saving grace was that the Indices did not dip to the 6000 levels and just ended a bit higher to it. Though the fall has been an opportunity presenting itself to the investors, to buy some of the Midcap stocks and blue chips at some decent levels, yet the quantum of fall was something that many didnt expect.
The fall infact brought back the Satyam scare to the forelight, when most of the mid cap stocks were butchered around the same time of the year 2009, with the only exception being that the markets were in the downturn then and now we are seeing higher side of the Indices.
Technically the charts are indicating that the fall was not dramatical and that a lot of base building would have to be developed and built if at all the Indices were to crossover the 6100 levels for now, and that a dip to the 5800 would be imminent if the 5880 fails to hold on for the next 2-3 sessions.
Except the RBI announcing something positive to help the bulls turn the ball into their court, the bears would rule supreme with the mantra, sell on rallies with stoploss of the 6100 for time being ……
(Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)