New Series... New Hope?

image courtesy: indiabulls

With the new series begining on Friday with a huge drop, the picture does not look good at all. However as I have said earlier that all is not lost ...it never is... with the new series there are some positives that can be taken heart from...

1) US package seems to be getting the  approval and on Monday this should come as a good news

2) Oil is trading in a range and not going out of reach.

3) Inflation in the country is not running away either...it is showing signs of stagnating and coming to December, the base effect would take place and the inflation would come down below the 10% levels.

4) The PE multiples are trading at a lower range of around 12. 

5) Double bottom seems to have been formed on the technical charts

Keeping all these factors in mind, we need not be completely despondent. Having said that we have to keep an eye on the 12800 mark on the sensex, which was the earlier low. If we break this and fall below it then it is a definite sign of worry. However if we go above this then there is a strong chance that we might have seen the bottom. (though I personally dont think so)

If you have a look at the charts we are still way below in the negative territory (with the red line breaking below the black line). Till the time we see Nifty crossing 4250 mark, we would be still having a negative trend.

So what should be done now...well wait for Monday...it might give us a whipsaw with the markets moving up a bit...but it would need to be seen to what extent do they go up...