World Market Picture is Weak

Dear Investor,

Well, you already know that American Markets sold off very hard last Friday. There was apparently no bad news to fuel such action. Big cap companies are reporting good earnings and stocks just get sold off. It appears as if somebody was waiting for good earnings to be reported so that he could sell his stock for a premium and get out of it.

India markets have similarly pumped up the share prices in anticipation of better earnings report. I could just feel the eagerness to sell the stock as soon as the earnings report comes out. Well, overall there is sell sign on NIFTY index. Expect some kind of correction in markets.

Lets look at some global markets. We have maintained our bullishness very strong as compared to other markets. Other markets are in clear bear market territory. That means that they are clearly below 150 day moving average line.

For NIFTY the support would be around 5088. Even though there is clear loss of momentum we are still strong and in bull phase. Perhaps may be in the topping phase.



European markets have been in bear market for quite some time. These markets have bounced back in past few weeks in anticipation of good earnings. This should be a good shorting point for Europe index.




American stocks have been in bear market (below 150 day moving line). It is behaving week during earnings season. Even though the companies report great earnings the market is selling off. Its hard to believe that bear phase has already started and taking hold of trader Psyche in America. Deflation talk is gathering some steam. That is a good strategy deployed by market makers to get selling started. It gives them plenty of opportunity to gobble up best of the stocks are mediocre prices. Fear will take hold in next few days and deflation air will blow are full steam.



As a bright spot in this gloomy blog is Gitanjali Gems which is giving clear buy sign. If we were is strong bull market this stock would be a buy. In overall global week environment it is likely that most of the stocks will be pulled down.



Even though selling is likely to occur in this market, its not going to be end of the world as some say. Those with money will get good buying price. As of today most of the stocks I checked from NIFTY Index are either in bear phase or near there respective TOP prices. Lets see how this week unfolds because this one is going to be action packed for sure.

Thanks

Anil

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