We have turned neutral but expect a sharp decline soon
In our previous issue, I had turned bearish with a caveat. I had said that “the price action towards the end of the fortnight (ending 27th November) has stirred us.
We now have a forecast: it is down. The headwinds are increasing.” However, it was an early signal and we needed a viable stop-loss. I had, therefore, asked: “What if we...
The market is trying to fight off a slew of bad news
Over the past fortnight, we have seen the Sensex moving in the range of 17,290 and 16,210. You realise that the difference between the high made on 25th November and the low made just two days later on 27th—on fears that Dubai was going to go bankrupt—is just 1,080 points. In fact, even on the 26th morning, the Sensex was above 17,200,...
Pending further evidence, we continue to have no market forecast
Last fortnight, I had said that we are entering what may be called a non-trending market. In such a market, investors, and even traders, can be easily tricked into buying and selling at the wrong time. Just when it seems that the market is about to sell off, it can suddenly bounce back, as short-term sellers exhaust themselves...
