Dow Jones is witnessing a very interesting period for traders. It had achieved its bottom target of 6460 in the first week of Mar 2009 and had to move up minimum by 38.2%. That meant a gain of 780 points from the low of 6460. In other words it should have reached minimum up to 7240, which it did. In fact on 18 Mar 2009 it touched the level of 7550. In short Dow has achieved its target and qualifies for a fall. The fall should take Dow back to its lower level of 6460 or thereabouts in a fortnight. However, if the fall is very sharp then downward slide may take Dow to the band between 5950 - 5780.
Expected Nifty Movement
Since other world markets including the Indian markets rose piggy back on American markets, the down hill journey is expected to be no different. Nifty will also witness its share of selling in coming days and will be eager to tumble down to at least 2550 level. The only saving grace will be if it takes some support at 2700 and bounces back again to 2850. But in the short term Nifty is bound to be back trading at 2550 level. Traders can make merry with this kind of situation. But a word of caution for traders : just see to it that Nifty doesn't breach 2500 on a closing basis. If that happens then be prepared for a blood bath!
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