As mentioned in our market update yesterday, the market predictably saw some rebound before resuming its downward journey closing at 2622.Today also, the market is likely to open flat. Yesterday's sharp fall in the last 45 minutes of trading on reasonable volumes indicates that the bearish trend is likely to continue albeit with some marginal technical bounce backs. The downward journey is not likely to be smooth and is likely to be charecterised by sharp movements. From a momentum based perspective, the marketcould also test 2200 levels. 2550-60 is going to be a crucial support for any bounce. High risk traders can use the bounce to shortthe market again.Only a cross over of 2780/2800 in case of a recovery will negate the bearish trend for the market.Key support and resistance levels are at 2560/2590 and 2680/2740.
Wednesday, March 4, 2009
Tuesday, March 3, 2009
Market on 03Mar09
Markets are expected to open flat based on global cues. Yesterday the Dow closed more than 4% in the red. Asian markets are currently trading 1-2% in the red as well.
In technical terms, yesterday the market broke a key support of 2680 on the spot. Hence, we would expect the negative trend to continue. As expected, the market has finally broken out of its range bound zone. Some technical bounce back is not ruled out. Markets will face resistance
at 2700/2730. On the lower side, markets are expected to test supports of 2630/2550.
In technical terms, yesterday the market broke a key support of 2680 on the spot. Hence, we would expect the negative trend to continue. As expected, the market has finally broken out of its range bound zone. Some technical bounce back is not ruled out. Markets will face resistance
at 2700/2730. On the lower side, markets are expected to test supports of 2630/2550.
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