Bears on a joy ride…(bulls on holiday)

NIFTY breaks immediate support at 4800 and has closed above. What next? At the time of this writing global markets are trading with tremendous weakness. Europe has closed at par with our markets, US indices trading with losses above 2%... , hence bearishness is to continue. Value zone on daily chart is quite far away at 5010–5100; the likeliness of reaching these levels in the next session is a far cry for NIFTY.

Next supports for NIFTY are at 4740–4700 levels, which seems to get tested tomorrow. Hourly charts which opened with a strong bullish divergence has given back all of its bullish strength. With value zone being at 4875-913 on the hourly, price moves to these levels may be used for adding to existing shorts. Hold on to short trade positions till reversal signals occur.

Markets are far below value on today's closing, trading new short positions on daily charts is like going with the 'greater fool's theory', it is suicidal. Wait for pullbacks to value zone which would be the next station for the market express to stop. And that would be the right place to hop in and enjoy the bear journey. Those who have entered this bear journey when the train started its journey are having a ball of time.

Sector Summary

TECHNOLOGY along with TELECOM Sector stayed behind in the bear hunt today. They have lost lesser at 1.60% on their index values compared to a meltdown of more than 3 % on the other Sectors. Though software industry was weak and Computer software training Industry being the biggest loser today by giving back more than 6%, it was hard performance from the Hardware Industry that managed to keep the Index with lesser losses. EDUCOMP lost further 7% along with APTECH which lost more than 5% today.

Smaller losses in the Telecom Equipments industry kept the TELECOM Sector from losing more. The biggest loser today was CONSUMER SERVICES Sector which has lost close to 4% on its value. Most the credit for this bear smashing goes to the down hill performance of Diamonds and Food Processing Industry groups. We would like to add a hint here, the only Industry that is having very high bullish strength on the weekly charts is the Diamond industry, TITAN has had a star performance which is now at the value zone. Long trades can be considered here with strict stop loss. European meltdown has hit the bullion markets too.