Update for 5th April 2011

   Will the Markets Take a Breather Now ?

• Nifty futures continued with it's relentless up move on Monday, though a slight slow down or some more of sideways trading was expected.
• It seems that the market at present is lead by those FIIs who are short term momentum traders. The weakness in the Dollar index is also pushing them to buy non Dollar assets whereby they benefit from the asset price rise as well as the currency appreciation. However, generally speaking, such sudden rallies have not been much beneficial to the market in the longer term, as when the momentum traders ( read FIIs ) start selling, the gains may disappear just like the way it appeared. 
• As the rally has already run vertically and gained so much in such a short time frame, some slow down to the relentless move can be expected now. The rising crude oil prices may act as a break to the fast rally at any time.
• However, as matter of abundant caution, it may be noted that the present rally which came after a long period of sideways trading can travel much higher than the popular expectations.

    Nifty Futures - Intra-day Chart

  Nifty Futures  - Daily Chart 

Update for 4th April 2011

  Congrats to Team India, We are Proud of You ! 

 Shall We Expect a Euphoric Gap Up Open Too ?

• Team India and  it's captain rose to the expectations of every Indian over the weekend to regain the Cricket World Cup for the second time in history. 
• moemtumsignal.blogspot.com too is joining the celebrations by going in for a hastily done theme color change of the blog. Hats off to the men in blue ! 
• Now the question is : Will the Indian stock market too move out from a phase of recent under performance to out performance ? ( This blogger is not talking about the past week's rally but about the under performance which has been there for the past four months or so. )
• It is said that soccer world cup wins are associated with out-performance or better economic conditions in the winning countries, in the short to medium term. Unfortunately, it is not known whether any similar betterment of  economic conditions can be expected after cricket world cup wins.  
• Then the next question is : Shall we at least expect a euphoric gap up open on Monday ? 
• The answer seems to an yes due to the positive closes achieved by most other stock markets on Friday.  However, stock market is not a place where euphoria is beneficial to any one!   

    Nifty Futures - Intra-day Chart