12 Feb 2008
Market ended in a bearish zone
The listing of RPOWER could not save the market confidence. After a volatile trade nifty closed with a loss of 263 points below the 200 day moving average first time since 24 July 2006. Market closed shop in a bearish zone below the 61.8% level of the fibonacci retracement. All techincal indications are bearish.
What is next?
As the market fell below 5000, the psychological level, then below 200 DMA, also below the 61.8% of Fibonacci retracement, we need to wait for a further bottom. We have to look whether the market creates a double bottom at near 4500 levels and then a pullback. But for a pullback, it is not necessary for a bouble bottom. Any factors from global markets or domestic which are favouring to bulls can lead to a recovery. But technically, a double bottom will give a strong support.
US Indices yesterday have done a recovery from losses. Dow jones closed with a gain of 57 points. But this can not be treated as a signal that the falling channel is broken. Asian markets also trading in green.
FIIs were net sellers for 1268 crores and DIIs also sold for 22 crores, as NSE provisional data.
Nifty February 2008 futures were at 4781.10, at a discount of 75.90 points as compared to spot closing of 4857.
Market breadth was very weak. NSE advances:declines were 59:1119
Archives: