NO BLOG UPDATE TILL 2/8/09

there will not be any update on blog till 2/8/09.

Fwd: MARKET STATUS

in last update on 18/7/09, i had said we are heading towards 16k+. we have moved higher in strong manner so far, crossed 15098 and next hurdle is at last top made at 15600.we are facing resistance at a trend line connecting tops made on 29/06/09, 6/7/09.

 

i was just trying to compare current moves with moves just before jan 2008 top at 21206.we had seen highest rsi level of apprx 85 when we were near 18k in first week of oct 2007. after that we moved sideways in range of apprx 2000 points betn 18500 and 20500 for two months nov and dec 2007.sensex moved higher but with reducing rsi levels.means it was a weaker rally.during that period retail participation increased and distribution was on by smart players.we made top in jan2008 and big correction started......

 

we are moving in range of 13500 and 15500 since last 2 months. we have seen highest rsi lvl of 80 on 19/5/09 in post election result euphoria when sensex was at 14931.yeterday we closed at 15378 but rsi level is 63.

sensex is moving higher but with reducing rsi level, weaker rally again?

if we in the similar situation and if we r going to make an intermediate top we shd see active retail participation, upmoves in mid and small cap stocks. yesterday we have seen rise in volumes of mid and small cap and upmoves.may be in couple of weeks we may see an intermediate top.but we must see more n more volumes in mid and small cap stocks yet and retail participation also.we may face strong resistance when we reach rsi level of apprx 70.till then enjoy rally in mid and small cap stocks.......