NEXT DAILY POST ON
28 March 2016.
WISH ALL THE
READERS A HAPPY and COLORFUL HOLI
Thought for the day
"Sunshine is delicious, rain is
refreshing, wind braces us up, snow is exhilarating; there is really no such
thing as bad weather, only different kinds of good weather."
—John Ruskin (English, 1819-1900)
Word for the day
Saturnine (Adj)
Sluggish in
temperament; gloomy; taciturn.
(Source: Dictionary.com)
Malice towards none
Following the footsteps of his mother, Mukesh Ambani's son
has shed half his weight only to gain weight in his father's business empire.
First random thought this morning
The government has taken a brave step towards implementation of a critical
structural reform, i.e., achieving fully market linked small saving rates. The
resistance is likely and natural. Nonetheless a path has been shown. Even if
the present government fails to tread on it, someone will traverse it, in not a
long distant future.
Nifty:
on the way to 8K, lack momentum to move beyond
Since beginning of this month I have been insisting (see here
and here)
that Nifty faces a credible resistance in 7600-7610 range and a successful
crossover will take it to 8000 mark in no time.
The market closed last week right in the top resistance zone. It
however looks like that the resistance will be overcome this week and the up
move will strengthen further, led of course by financials.
However, the momentum, measured as a matrix of cash delivery
volumes, volatility, market breadth, etc., has failed to pick up with the
latest up move in the market.
In my view, therefore, it is more likely that the current move may
terminate in 7889-7940 range (with a small possibility of going up to 8065
level) and not culminate into beginning of a new market cycle.
My trade in the current circumstance would be (a) Cover shorts immediately;
(b) initiate fresh long in large banks; (c) liquidate all trading positions
above 7860; (d) initiate aggressive shorts close to 8100 level.
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