The 30-stock benchmark sensex once again closed in the Red today for 4th consecutive day.
The overall outlook remains bearish with many negative factors in the global scenario.
The Egypt political crisis, the shooting crude prices to 100$, the inflation in the home front not showing signs of weakening and RBI's monetary measures to control the same....
There have been many pullback signs in the past week (and especially the nice pullback from the lows today) but the underlying tone remains weak. Note that the oversold RSI indicator too has a tendency to remain oversold for days together.
With much of important economic data being released this week starting with PMI on tuesday, it will decide the tone for the week.
Technicals show that markets are bouncing back from the RSI 30, the short term stochs shows a temperory pullback in the week. The markets if trending up in the week will test the support of the long term 200 DMA at 18720. According to me, the markets should show a rally till the channel formed down and trend back down.
Its time to wait and entry will be recommended only on crossing of the levels of 19100.
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