As we wrote on 30th January, we saw a strong bounce from the levels of 5459-5416 to 5565-5570. But like other Fridays again, it did not sustain.
Now all the TV channels are telling us that the next week will be disastrous as we breached an important 5400 level and closed below that. And disturbed investors / nervous traders are all calling up their brokers to seek advise.
Every one says that now the Nifty will show the levels of 5100-5150. I some how dont believe. I also think that when everyone is so much confident about markets going down, they have probably already shorted or sold off. SO WHERE IS THE POWER TO SHORT THE MARKET FURTHER FROM CURRENT LEVELS?
I might be wrong. But I feel that whatever bottom we make during first 3 days of this week (until Wednesday evening) should be a near term bottom. I also feel that these bottoms would be more like a printed numbers. Not many people will get a chance to buy at those lower levels. There are two reasons for that:
1. The weak hands will sell the stocks at the panic.
2. Not many people will come to sell the stock at such levels. So, after the initial sell off, the market should return to the normalcy and many stocks should resume their uptrends / short covering.
However, these printed levels will create a strong fear in the minds of Investors. And at every higher levels they would want to exit. Well, the same guys would suddenly in Mid March would want to buy when they need to be selling ! But thats how people lose money in the Markets :)
So, my call is, from these levels when we meet next week, we will be sitting on some gains, rather than losses..!
Now all the TV channels are telling us that the next week will be disastrous as we breached an important 5400 level and closed below that. And disturbed investors / nervous traders are all calling up their brokers to seek advise.
Every one says that now the Nifty will show the levels of 5100-5150. I some how dont believe. I also think that when everyone is so much confident about markets going down, they have probably already shorted or sold off. SO WHERE IS THE POWER TO SHORT THE MARKET FURTHER FROM CURRENT LEVELS?
I might be wrong. But I feel that whatever bottom we make during first 3 days of this week (until Wednesday evening) should be a near term bottom. I also feel that these bottoms would be more like a printed numbers. Not many people will get a chance to buy at those lower levels. There are two reasons for that:
1. The weak hands will sell the stocks at the panic.
2. Not many people will come to sell the stock at such levels. So, after the initial sell off, the market should return to the normalcy and many stocks should resume their uptrends / short covering.
However, these printed levels will create a strong fear in the minds of Investors. And at every higher levels they would want to exit. Well, the same guys would suddenly in Mid March would want to buy when they need to be selling ! But thats how people lose money in the Markets :)
So, my call is, from these levels when we meet next week, we will be sitting on some gains, rather than losses..!
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