NIFTY lost 1.85% in last week and closed at 5262.60. the prices have formed a Black Candlestick, signalling weakness in the market. The results season commenced last week, with Infosys being the first Blue Chip Company to announce its results. The results were better than street's expectations, which gave an acceleration to all the major Tech Stocks. Infosys itself made a Life Time High.
But at the same time, there was a presence of panic in the market, due to the news flow of Greece Bankruptcy and its downgrading and also due to 11.5% Growth registered by China in a year, leading to further weakening of Dollar.
On Friday Evening, Goldman Sachs was charged by US SEC for defrauding its customers by overpricing the CDOs, which gave a setback to the US Markets too. This news will trigger a good sell-off in our Markets too. at the same time, RBI is going to announce its Credit Policy on April 20, 2010, Tuesday, which is also a reason for the persisting weakn ess in the markets on account of the expectations, of rate hike.
Hence, with the RSI (Relative Strength Index) (14-Days RSI: 60.48 & 9-Days RSI: 59.64) giving a SELL Signal on Weekly Chart, it will be a week to trade with more caution, by following Strict Stop Losses.
No comments:
Post a Comment