Market Forecast for 19.03.07
The ordinary investor is currently staying away from the market, just because he doesn't know the behavior of the market.. negative openings.. huge volatility.. uncertain closing are all the mantra of the market now.. We were boasting of globalisation and the impact of globalisation came in a big way int he indian market now.. global markets are weak and the indian market follow suit.. rising inflation all over the world, untimely price increase of the cement by the companies and the government action.., rising interest rates are all playing their part in the bear market.. The market was again hammered well by the short sellers and it is going to be blood bath again... Technically speaking, market is in a highly oversold condition and a short recovery can prop up market any time from 3525+,so going short in panic or below 3550 can be harmful. on the higher side if market holds on above 3650+ on closing basis then it can favor bulls for short term. It looks like that after a consolidation, market may take u turn,but this is bull trap market and every high may face hammer.
Regarding Monday opening, it may open flat and if it remains above 3620+, keep long with a stop loss of 3605 for 3675-3700. A break below 3615- & sustain below this level , go short with SL 3630 for target of 3560-then 3510. Since the market is still uncertain, i Advise all to better avoid the market and wait for a clear market direction....