Folks,
As i said ystday our Nifty is almost completely bullish except of course for a neutral TRIN inspite of the rally and distribution in nifty stocks. We could be volatile. The FNO side is giving mixed cues. Many stocks that witnessed shortcovering should in fact drop if not today, tomrrow and more than half of the FNO scrips showed shortcovering in the last two days. Alex says when OI falls while the underlying rallies it means both winners and loosers are getting cold feet. Longs are taking profits and shorts are covering. Market discounts the future and a trend that is accepted by majority is ready to reverse. If OI falls during a rally sell and get ready to sell short. Dont do it today, may be after the trust vote one can attempt this with a strict stop loss. Though i may attempt today after all shorts are covered and the scrips have rallied sufficiently due to shortcovering.
DOWJONES: Very interestingly poised. For the first time in so many days in almost 3 months (about 55 days) the MACD fast line just crossed above the slow line and thats bullish. The bear power and bull power both favor bulls. On the other hand, the ADX has ticked down drastically with the NM above the PM and the ADX says SELL the Dow. There is distribution in Dow which is again bearish. The TRINS are oversold and in keeping with the fall. It could be very volatile for a day or two and then rally as MACD fast line above slow line is quite a reliable indicator.
CRUDE: Completely bearish with an MACD sell divergence, declining bull power and tick down in ADX. So crude could do badly today and Dow may rally in late trade after being volatile in early trade?? |
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