The bull market which started with a euphoric note with the beginning of the year is slowly but steadily losing its strength. Major indices have given way for bearishness. Nifty gets it's long trade which came at 4795 comes to a close at 5297.50 today with a gain of 502.5 points. With the bullish trend on the daily charts over for now, we also find many large cap stocks that form the index going into non-trend.
Some of the stocks have gained more bearish strength, which will give us opportunities for value buys when there is a good bullish pattern developing later. Though markets gave in to bear pressure some fo the stocks like RELINFRA and RPOWER showed real strength and continued their bullish trend mopping up more gains to the trend follower in these stocks.
Another good news in today's falling market is that the Auto ancillaries Index had its best time, out of the 32 stocks that this index constitutes of 5 of them had their new high's. The total New highs today was 20 against 8 new price lows. The days of the NH/NL index totally tilted towards the highs is becoming slower, but there are some great stocks out there which will give up some wonderful opportunities to trade them long when they reach their value zones.
Presently they are really priced too high and are over valued, for them to reach value zone and give some decent low risk buying opportunity the market has to correct. So, this correction is a welcome sign. That doesn't mean that you should stick to you positions even if they are losing. Get out of the positions that have broken their supports or have turned trend bearish, keep your capital safe to jump in at the right time when the strong stocks give us the real opportunity.
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