Hello,
Market swings are becoming more like a Pendulum. We move to one extreme and then fall back to go to the other extreme. Of course unlike a real pendulum this cannot continue for every since some strong force will move it out of the predefined comfort area. But until that happens, for a trader it makes more sense to either use a mean reversion strategy to trade this market or be out of the market until a direction is provided one way or the other.
Overnight US markets fell as Federal Reserve Chairman Ben S. Bernanke testifying before the Senate banking committee said that they (Fed) recognize that the economic outlook remains unusually uncertain and that they remain prepared to take further policy actions as needed.
Nifty yesterday once again tested the 5410 Supply Zone and fell back to close the day just below the 5400 mark. With weak US markets and Asian markets, we can fall back once again to our support zone at 5365 failing which 5335 which is the more crucial support.
Regards
Prashanth
Mythri Stocks & Shares Pvt Ltd.,
No comments:
Post a Comment