PRE-OPEN MARKET OUTLOOK(20-04-2009)

I AM TELLING FOR THE LAST MANY DAYS THAT "AS IT HAS BEEN OBSERVED MANY TIMES THAT BEAR MARKET RALLIES REVERSED BACK AFTER TESTING 200 DMA THEREFORE THIS LAST CONFIRMATION IS MUST FOR ASCERTAING BEGINING OF BULL MARKETS THAT INDIAN MARKETS ARE SUSTAINING ABOVE 200 DMA OR NOT."

I AM TELLING FOR THE LAST MANY DAYS THAT "SUFFICIENT INTRADAY SELLING AND SELLING PATTERNS ON DAILY CHARTS ARE MUST FOR REVERSAL OR CORRECTION OF MARCH 2009 PULL BACK RALLY."

200 DMA HAS BEEN TESTED AND SUFFICIENT INTRADAY SELLING AND SELLING PATTERNS ON DAILY CHARTS HAS BEEN FORMED THEREFORE INDIAN AMRKETS ARE NOW READY FOR CORRECTION
FROM TECHNICAL ANALYSIS CHART IT IS CLEAR THAT

1- MACD- GAP BETWEEN BOTH LINES HAS INCREASED AND MACD LINE HAS STARTED TO LOOK DOWNWARD THEREFORE WITH THE CONVERGENCE OF BOTH LINES DOWN MOVE WILL BE SEEN.

2- FAST AND SLOW STOCHASTIC- BOTH STARTED TO MOVE DOWN FRON OVERBOUGHT ZONE THEREFORE DOWN MOVE WILL BE SEEN.

3- ROC- SHOWING NEGATIVE DIVERGENCE IN POSITIVE ZONE THEREFORE DOWN MOVE WILL BE SEEN.

4- RSI- STARTED TO MOVE DOWN FROM OVERBOUGHT ZONE THEREFORE DOWN MOVE WILL BE SEEN.

ALL THE INDICATORS SHOWING WEAKNESS AND CORRECTION WILL START FROM TODAY THEREFORE RED OPENING AND RED CLOSING WILL BE SEEN TODAY.


(LALIT KUMAR DHINGRA)