Last week saw lots of ups and downs in Nifty. Good news is that it was able to close up for the week. Another good news is that it was able to hold it’s support above the breakout levels of 4100+. Does that mean we are again in for a rally in the coming days/this week?

* Stocks closed at/near the high for the week. Very Positive
* MACD on daily charts is climbing up. Good.
* 13 DMA crossed below 26 DMA. Very Bearish
* Weekly MACD is trending down. Very Bearish

So what should an investor do in this climate?

Keep buying put options and short stocks that are allowed to be shorted. Utilize every upside in market moves to short further.

The single biggest factor was Budget and since the medium term trend dictated by weekly charts is already down, i would say Budget or No budget, markets are going to go down. Why am i so sure? This time around we have Short term technicals, Medium term technicals AND Fundamentals, all of them shouting and saying market is going down.

By Prasoon Gopal

For further reading, you can track me @ http://www.stocksbuddy.com/blogs/?author=36

prasoon_gopal@yahoo.com

I have been trading for over 15 years and have been mostly involved with Technical Analysis. I love to dig into Macro-Micro economics as it gives us a heads-up of where the market is headed for. Some of my work and articles have been published on various websites and magazines over the past decade. I love to write articles before something happens rather than after the fact.

© 2009 Copyright Prasoon Gopal - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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