NIFTY & SENSEX SLIDING DOWN ?

WHY NIFTY & SENSEX SLIDING DOWN ? WHAT TO DO ?

Dear friends,,

In the previous week, We hve seen the nifty which has rised without a drag frm weeks is facing resistance to cross 5100.

1) Correction is Healthy... but the timing should be correct to take long positions..General public are very optimistic that markets will shoot up to 5200 un interruptedly,and took large long positions in stocks and nifty. But, as usual.... HNI's and Large players has hedged their positions wth shorts (options or in futures)without selling their holdings. By this they can even be in profits when the nifty and stock goes down. But, where as v public will loose as v hold only longs..

2) Chart above, clearly shows that, on 05-10-2009 nifty closed below its support trend line at 4991, which is the first sign of correction. And, on 6th,7th,8th and 9th Nifty tried to bounce back , but could not cross the trendline, which shows weakness to stay over.

3) As the nifty is below the trend line.The only hope for nifty to hold wth sl 4900 is the Relative Strength Index factor which is 54.8 on 9-10-2009 .

4) If nifty manages to hold over 4950. Again, 5200 is not a big task to acheive.....

So, hold ur longs with strict SL.Any thing may happen either or down.