Bottom in Sight

Click Here to Receive Free Daily Tips to your email

Dear Investor,

Check Our Current Recommendations

I believe we are very close to the short term bottom. The panic sell what we discussed before has been seen in this market. Friday almost 90% volume was on sell side. Such a extreme sell volume is sign of panic sell off.

The call for bottom might be little bit early but hey, sometimes we have to make a call and move on. Keep enough bandwidth for averaging down later in case we are proven wrong. You might have to cut your losses too. But the point is the risk today is much less than the risk at NIFTY 5300 levels. Chances are that there will be a bounce and it might fail but we don't know that yet. What we know is panic sell has taken place in India and also in US markets. In fact the panic sell level has been seen in all the countries.

The story they used to get the sell off done is Euro zone debt defaults. Think about it, the story has been floated for few days. Don't you think the top brass new about is already. Now the story has been successfully implanted in individual investors mind that world is going to end and you must sell your positions. The emotional traders takes this story and becomes a hypnotized puppet that simply will react to the situation and start selling. The task will be accomplished for market makers and they will suck up all the best in the lot. You, the story carrier will be left alone to reflect on your reaction after you are out of the game.

Well, I am not telling you to go and put all your money in the market. What you need to think about the power of media. It changes your personality and forces you to take actions at wrong time, like buying at the top and selling at the bottom.


Please add following stocks to your watchlist

In last correction NIFTY took support at 4600 level. We are very close to that. So even if there is no possibility of big rally, we should anticipate at least a bounce near 5000-5200 level.



PNB is a very strong stock in this correction. It has just closed near its support level. We should book profits around 900-950 level.



Ranbaxy is on steeper sell. It has just touched 150 line which should act as a support. Might be a good start.



SBI has broken 150 day line. I think that was done to trigger selloff at massive volumes. It could bottom soon and claim its 150 day line as value buyers step in.




Torrent Pharma is making new highs in correcting market. Keep watching it.

Thanks
Anil
Got a Question/Send your contributions for other members: mailto:indiastocktrend@gmail.com


Please forward this email to your friends and family members to help them build wealth under technical stock market guidance.

Disclaimer: Please trade with your own judgment or with the help of investment advisor. We are not responsible for any financial losses.

Stop Loss: Sell Stock if it closes below this price. It tells you that market has proved you wrong. Accept it.