Tuesday, August 16, 2011

Big decline in mid cap stocks

Today's market action was significant in many ways:

1. The Nifty close was the lowest so far in the current down trend. New lows are usually bearish.

2. A gap up was not sustained, with the Index moving down almost 130 points before rallying by a small amount. Markets that open up and close lower are usually in bear phases.

3. A number of mid cap stocks were hammered. In fact, they were beaten down so badly that many of them are now close to their 2008 bear market lows.

With today's decline, the Nifty has come down to test its 4950 lows made last week. This test gives a trade. It may be possible to go long with 4950 as the stop loss. Remember, Positions are taken after considering the environment for the day.


gourv said...

Hello Sir,

Well I know this blog is for TA.
Still I would ask your views on Anna and corruption.Which ever profession we may be in but all we want is a corruption free country.And by this blog I would like you to coney this message of mine to all the readers of this blog.
The Government has put a condition that 25 crore people have to support Jan Lokpal. To give your support call 022-61550789 (as given by Kiran Bedi) from your mobile no. Your call will disconnect after 1 ring and register automatically. You will get an SMS confirming this. I did it. Do it and pass to all your friends to help make India corruption free. It is now or never!
Gourav(Working in TCS meet you in CNBC investor camp)

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