Nifty Sensex Upmoves Likely

OUTLOOK : POSITIVE

From the looks of it, we might be out of the woods, if we can have a couple of days of decent upmoves. The upmoves of the past few days has ensured that we are close on the charts of positive territory. Now with the news flow of the rate cuts coming in, the markets should gain some traction. Until there is a sharp downmove, we can safely assume that we would be out of the short term bearish trend if we close in the greens for a couple of more days!!!

What needs to be seen now would be whether the FII selling subsides (which in any case it does due the Christmas break abroad), and if it does then there is enough domestic money waiting on the sidelines to take the markets up in a hurry. Only a cap of caution being the quarterly results which are not expected to be good...If we can have some decency on that count also then we can safely say that we might have seen the worst behind us.

As written in my previous posts, last series has held up well, and the retesting and holding of the lower levels of around 8500 have augured well for the markets. Now with the triple testing of the bottoms, we might have formed a base from which we can aim for higher levels. . . provided that the levels of 8500 hold up. Also a couple of other factors seem to be in the favour are, that we have started to trade above the Moving Averages line and if we can trade in this region for some more days, not giving up the gains then we would have firmly gone out of the bear phase, at least for the short term.

MACD: slowly trying to get into positive territory, now left with just some more ground to cover

image courtesy:indiabulls