Posted By : Kishore B.S
After a long weekend and long gap from trading, the markets finally failed to cheer traders today.
The market has turned bearish. The short term trend which was upwards has now changed to downwards. People will be very tempted to go long in this market. But this is not the right time to go long. The market has not bottomed out. The 20 point gap 5180-5200 will most probably get filled in this downturn. The 5150 levels which is being tested for past many times might get broken this time.
The global indications are very weak. US data came bad and the problems in Europe are resurfacing. Spain is suffering from problems. The only thing which can halt this bloodbath is Ben Bernake’s comment today. But that will also be temporarily. If any such rally happens it will be a good opportunity to short the market. Today, Hang Seng and Europe were closed. So, the reaction of US data will be seen in their markets tomorrow.
The Nifty showed no strength today. There just a one minor recovery of 20 points from 5245 to 5265 which also not lasted. The market has turned bearish and people are advised to stay out of the market right now.
(inputs Mr. Shubham Deva, An Stock Market Institute Associate, IIT Kanpur)