In past few days there was a roller coaster ride for market participants. Despite Obama and Bernake's BIG efforts with respect to stimulus packages and saving continually falling big dying elephants (Citi, AIG etc), US markets registered new lows and are now 12 years back in time ! Greats like Buffet are hiding under carpets (there advice was buy, buy and buy AND that too way up from here !).
Its not that I am happy about how things are unfolding, I think wahtever we are witnessing is not the surprise, the surprising element is how these politicians, policy makers and Keynesians are handling the situation. Had they let Market Forces( liquidation in this case) take care of the preceding excesses, we would have started seeing some ecovery by then. But, they chose the wrong path instead and the result is we are still in the primary phase of this crisis, a lot worse is yet to come.
Nifty Closed with some hope for Bulls
After the above thoughts, let me focus on Nifty Future trading. Today on intraday chart of Nifty Future I got a hint of a relief for bulls. Looking at 15 Min Chart I arrived at following points:
- Nifty Future managed to close just upside the shown downtrend line.
- It closed near highs, suggesting a possible gap up opening tomorrow.
- If we take into consideration the swing of 2669 to 2584 down move, Nifty Future twice tried to break the 61.8 % retracement level but could not. This if acts as resistance (2637) then there may be a delay or cancelation of possible upmove by Nifty Future. These days certain things like "Global cues" can overturn any overnight traders' faith, so much will also depend on how these cues are there when Indian Markets open.