Thursday, March 22, 2007

Nifty wave5 next or Nifty wave 2/b pullback?














50:50 really
use options
from an ema perspective
falling weekly 13 ema = 3886, rising 13 ema = 3746
50% retrace of 3570-3887 reads 3717
if we go higher above 3887 then the 50% retracement target changes
In this world of 50:50 i would not bet on a big run away trend.
The earlier panic of japanese rate hikes+liquidity crunch is now lower because we have fed on hold which means extra liquidity splashing around.

Keep in mind Indian inflation problems.

Growth is fine, only concern is inflation and further hikes by the rbi
If rbi hikes again then u will see pressure on interest rate sensitives once again.
Autos/banks most sensitive to this stuff
and IT will be most resistant to declines in any bear moves.





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