Nov 29, 2010

Premarket View - 29.11.2010

Option reading index is (-) 0.13 which is down from last trading day figure of 0.74 indicating buying support at lower levels. The figure is within the normal zone and hence expected volatility is within one Std Deviation.






As observed earlier on Premarket View 25.11.2010,(click to see the post Premarket View 25.11.2010), short term uptrend is truncated and nifty is in downtrend. On 26/11, Nifty touched 5690 before rallying back to 5700 levels and closed at 5752. Oscillators are in neutral mode and TRIX in weekly time frame indicates selling pressure to continue for some more time.
Also Fundamentally sentiments are affected due to war cry on the korean peninsula, 2G & housing scams, uncertain political position, rise in USD etc., 
It is better to trade lightly and hold cash to pick some fundamentally strong companies for long term investment.

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