The budget over and the picture has started getting clear of the impact across sectors.
The markets were up 625 points on the next day of the budget.
The rally was expected but it extended too far. The international political events of the middle east and the crude prices are all set to dominate the trend of the remaining part of the week.
With the rising crude (Brent above 116$ again) and high volatility due to the the Middle east crisis, the 625 point rally could fizzle out soon. However rosier or soothing the budget may be, it will be the inflationary factors that would determine the short term movement.
Technically, the sensex should continue its move towards the crucial DMA resistance as discussed earlier.
If it crosses over, then it will be a bullish move ahead
https://lh5.googleusercontent.com/-YTrPX7lZ4jA/TWvCTFrVDXI/AAAAAAAAAeo/KhWWmJifdWQ/s1600/2011Feb-SENSEX-800x600.png
Usually the technicals work better in the shorter term. After all sentiments and observations dominate the short term trades.
The following two stocks are in observation for investment from a long term perspective.
Infosys tech: The stock trades very close to its 200 DMA which is coincidently also near a long term suppotr line. As one can see in the chart, the prices have time and again bounced off from close to this support line.
Hindalco Inds: The stock had broke off the long term trendline some days back as seen.
Its also approaching its 200 DMA support. What remains to be seen is whether it bounces back and crosses the trendline back.
The markets were up 625 points on the next day of the budget.
The rally was expected but it extended too far. The international political events of the middle east and the crude prices are all set to dominate the trend of the remaining part of the week.
With the rising crude (Brent above 116$ again) and high volatility due to the the Middle east crisis, the 625 point rally could fizzle out soon. However rosier or soothing the budget may be, it will be the inflationary factors that would determine the short term movement.
Technically, the sensex should continue its move towards the crucial DMA resistance as discussed earlier.
If it crosses over, then it will be a bullish move ahead
https://lh5.googleusercontent.com/-YTrPX7lZ4jA/TWvCTFrVDXI/AAAAAAAAAeo/KhWWmJifdWQ/s1600/2011Feb-SENSEX-800x600.png
Usually the technicals work better in the shorter term. After all sentiments and observations dominate the short term trades.
The following two stocks are in observation for investment from a long term perspective.
Infosys tech: The stock trades very close to its 200 DMA which is coincidently also near a long term suppotr line. As one can see in the chart, the prices have time and again bounced off from close to this support line.
Its also approaching its 200 DMA support. What remains to be seen is whether it bounces back and crosses the trendline back.
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