Read State of the market blog – http://www.stateofthemarket.net/blog/
Yesterday, the bulls and bears wrestled for control but there wasn’t a clear winner in the competition. On upside near 20 dma of 5070-5080, there was clear supply pressure; and on downside near 50 dma i.e. 5000-5005: there was visible buying. But amidst all choppiness - one trend that was visible: lack of conviction among market participants. There is a latent feeling among market participants that this market is going nowhere. It is only below 5000 we may see some panic.
Market Observations
· It is going to be a long trading day from tomorrow. Trading will start at 9:00 AM.
· Longer trading hours = more Choppiness.
· One View gaining ground: Global markets may remain range bound in CY 2010; and will be less dominated by purely macro factors than over the past two years
· What does this mean? - Market risk will reduce significantly on individual stocks.
· No surprise - US Fed will keep rates low for an extended period, as long as unemployment remains high and the inflation outlook is stable.
· Overnight US market closed flat post monetary policy announcement. There was no surprise to price in
· Today morning, Asian markets are trading flat. SGX Nifty suggests flat opening for our markets as well.
Read the complete observations - http://www.stateofthemarket.net/blog/?p=9990
State of the Market members can access trading notes - http://www.stateofthemarket.net/blog/?p=9980
Cheers
Deepak Singh