Feb 112011

If you have been following my views on business channels, you would know that I have been saying for quite some time now that the decline in stock markets is not just restricted to one or two stock markets in the world. Many markets, frontier and emerging have been taking it in on their chin.

Yesterday, Singapore's STI joined the list of stock indices that have slipped into bear market territory.

The index ploughed through its previous trough and clocked lower top and lower bottom. The Hang Seng Index too is just within a hair's breadth of clocking lower lows and lower highs. A close for the Hang Seng Index below 22620( 88 points below yesterday's close) and this index can also be marked as having entered a bear market. The contagion is spreading.

  5 Responses to “One more to the bear camp and counting”

  1. Dear Sir,
    I have been following ur comments on tv since few weeks now and i find that your techinal knowledge is too good.i saw you saying on cnbc tv 18 that nifty will find support around 1% below from 5225 levels and nifty bounce back from around 5175 levels, it was a perfect call. Now i would like to know what is next level of nifty on higher side and lower side.
    Thanking you in advance,
    Jeetu Ahuja

    • Dear Jeetu,

      Thank you for your comments. Nifty has very high possibility that it will not cross 5565, watch for pressure at 5492 itself. Counter-trend moves are more difficult to predict than the trend moves. Once the pressure starts, should see sub 5k levels ideally 4779-4756 with a breather near 5008.

      Good trading,

  2. Hi Jai,

    Do you think besides Reliance whether Bank Nifty can be sold at these levels? What levels are you looking at for the Bank Nifty, please?

    Thanks in advance.


    • Bank Nifty strong resistance at 11100 – 11250. Taking action closer to these levels would make sense. Alternately, taking action when Nifty breaks 5408 can also be a strategy. Of course, using appropriate stop to control risk is an absolute MUST.

  3. What would be the stop?

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