Oil & Gas Sector took a strong lead today followed by Consumer services and Technology. All the sectors registered gains, with Telecom being the only sector with nil gains. Oil & Gas sector has already retraced very strong bearish divergence on weekly charts. Even Crude Oil charts have similar patterns. Every move up gains more bearish strength. Shorting at the right time will give immediate gains.
From November onwards, though market did not give in to bearish sentiments. No bull moves have given considerable gains. The march up which took 50 trading days from 4550 to 5300 on the NIFTY index took just 15 trading days to retrace back almost to the same levels. On the bullish side the journey was not smooth; it had many pitch and bounce. This did not give any good profits on long trades. While short which was signaled at 4970 levels got covered at 4770, giving a good 200 points profits in a short span of 10 trading days.
Market is getting tighter every day. We have to find the right opportunity by waiting in patience and also be equally smart to get out with considerable gains on finding a small weakness to the prevailing trend. As of now, though the market is trying to inch up every day with small gains to previous close. There is a strong fall likely, which would wash off all the accumulated gains in few trading sessions. Those who trade on the long side is double cautious to exit on first signs of weakness. Do not try to nail tops and bottoms, while doing so only would feed your brokers with commissions. While you are left, only with the bitter experience, as a lesson to learn. Remember what happened in January. 340 points were washed off on bullish gains in just 5 trading days of the 3rd week.
The only sector that has strength is Consumer Services. Where you can find Titan, Indian Hotels and the likes rocking. There is still steam left in these stocks. One more point of most importance is that, in an economic cycle from Boom to saturation and vise versa. End of a boom signifies with the top end market getting more domination. Jewelers, luxury goods, hotel etc,. Are the industries which pull in excess cash flow in the market? All the excess generated from the saturation phase to the boom phase will get sucked out by these industries. That is the time when these industries show strength. We are right in that phase now.
Make small gains; be happy with what you have made. Give a pat at the back for your excellence. Wait in patience for the next move to come. Happy trading.
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