SMI – 9th November 2012 – Market View

Posted By : Kishore B.S

Hi friends,

On the Onset it would be wise for me to state that the Indian Indices are more or less turning resilient to any set of newsflow whether Good or Bad and that the Global cues are fading away to influence us. Though at the first instance this might seem very pleasant and inspire us yet it should be a cause of some worry for us.
Coming to the reasons of the worry are that we are resilient in the sense though we broke out of the trading range during the start of this week above the much talked about level of 5730 yet we are time and again failing to touch new highs or move in the desired pace that is required to state that the upmove is stronger.
The reason for my statements are that these small upmoves could result in overbought zones and could lead to profit booking which would literally mean that we could head back into the trading range witnessed earlier of 5560-5730 only that the range would now get bigger Indicating wider swing opportunities.
When we look at the technical charts that is what they have to say, that the volatility is increasing and we could be entering the choppy zone for the time being and the trading mantra now would be to buy on dips and sell on rallies with the swing points being 5800-5680 ……             


Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)


Team SMI

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