Index: Some Random
Thoughts
The
index rose from 4146 in May 2016 to around 5739 on 25 Jan ’17 – a rise of
around 1600 points. From a technical perspective, I was expecting at least 500
points correction.
However,
index retraced by only 473 points from 5739 on 25 Jan ’17 to 5266 on 5 Feb ’17.
It seems we have to be satisfied with this 473 points correction. Moreover, it seems
the market has created support around 5400.
I
would have been happy with another 150 points correction - however, we have to
take what the market gives – another 150 points down move would have brought
stocks to a lower level near support and thus, reduce risk somewhat.
Last
day the Index had a volatile day - as can be seen in the chart below - it was a
battle between bears and bulls and the bulls just edged it.
With
declaration of financial companies coming up, I would be wary of sell on news.
And with market volatility and relatively high prices of stocks, postings might be
less frequent.
I will try
to write if I find something good . . . stocks with low risk . . . Best wishes
as always . . .
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