Home > Market View > Market stay in range with negative bias

Market stay in range with negative bias

Wednesday, August 19, 2009 Leave a comment Go to comments

Markets were again very volatile with a negative bias. The bulls are pretty determined not to let this market fall below 4350-4380 range. Even intraday players are picking up the index around these levels and selling it near 4450 levels.

This also means that making money in positional trades have become extremely difficult although intraday trading has become little more profitable if one is a disciplined trader.

As far short term trends is concerned, it is still negative. 4450-4500 levels will invite more short selling. Fresh longs will be built only if market is able to push itself beyond 4500 levels.

Medium trend remains still bullish as we are consolidating nicely. Serious concerns will arise if break below 4250 and head towards 4000.

Longer term trend is still up, so any corrections shall be used by players to accumulate good stocks.

The biggest concern is volatility. It is just not going down. As I had indicated earlier, high volatility often precedes trend reversal. So I’d be cautious in the short term and sit out. Stock specific activity might continue to happen as bulls and bear fight this bloody war!

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