DOW JONES
DJIA gave a clear bearish signal on Friday and the next immediate target for Dow Jones is 11500. DJIA is at a critical juncture. 11500 has provided support in the past but a break below that would confirm that the US markets are heading for long term bearishness. Though there is the carrot of FED rate cut, the market will have to face up to reality as Bear Stearns report their Financial Results on Monday, Goldman Sachs report theirs on Tuesday and Morgan Stanley and Lehmann Brothers come out with their sob story on Wednesday. God bless US stocks!
SENSEX
SENSEX has created a Window (gap) this week. This is a very bearish pattern. It means that there was some news that changed the market sentiment to very bearish and this is unlikely to change so soon.
NIFTY
The NIFTY chart indicates that the move on Friday was just profit booking. NIFTY charts also look bearish.
Outlook and Strategy for traders :-
Wait for the markets to make a decisive move to create positions. Trading in Futures is likely to be very interesting, challanging and profitable in coming days. Do not venture into the market without a good analyst by your side and whatever you do, DON'T buy any shares for the long term.
Support for Sensex is at 15330 and NIFTY is at 4449.
Disclaimer - Stock market recommendations are based on fundamental and technical analysis of stocks and no profit can be guaranteed. Investors are advised to make their own investment decisions with the information provided. Any investments, trades, and/or speculations made based on the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk.
