Markets Break Down Further

A new feature has been introduced with effect from yesterday, 3rd March 2008 . Now you can listen to an audio of all the posts written here. The link to the audio is at the end of this post. Click on ‘hear this post’ and a new window will open which will create an mp3 file and then read the post for you. Just make sure that your speakers/headphones are on. I agree, the audio is not upto the mark, but it is not all that bad too. Please bear with it.

Today was the second consecutive close below the 200 day moving average for the Nifty. As suggested earlier, Nifty remains inside the range of 4800-5500. The bottom end of the range at 4800 was touched today and the Nifty recovered from there. We have to wait and see whether this support holds tomorrow. If it does not, we have the next support at 4600. But that is only a support. If this range of 4800-5500 is broken then the target for the downside would be 4100. Though, we will remain in a long term uptrend till 4000 is broken, yet the Nifty going below 4600 will be the second sign that the long term trend may be broken, the first being the break below the 200 day moving average.

Since we remain in a downtrend and there are no definite signs of recovery right now, we should refrain from taking any fresh long positions. That is why no stocks are being discussed today.

As mentioned in earlier newsletters, we are inviting our esteemed readers to send in their contributions in the form of articles to be published on this page. Take this opportunity to voice your opinions to the world about the fall today, the markets in general or anything remotely connected to the markets. Please e-mail your articles and don’t forget to mention your name and location so that you are given due credit for the article that is published.

Happy investing!!!

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