What caused the decline in the Indian market, when the global cues were not bad? In fact, the major averages on Wall Street ended with moderate gains on Monday. The Asian markets that opened for trading on Tuesday were also trading in positive territory. Why did bank stocks slip in Indian market, especially that of SBI?
May be, the chart depicted at the top might provide some cues. The chart depicted above is the One look Ichimoku chart, that gives a clear picture.
The stock price closed at 2,735.60. The short term indicator, the Tankan Sen, stands at 2,788.50, while the broader Kinjun Sen stands at 2,914.55. The other indicator, the Chikou Span – which tracks the closing price 26 days ago, is at 2,879.75. The short term indicators do not augur well for the short term.
Where is the Kumo cloud?
The Kumo cloud has turned red since the 28th of December 2010. The Senkou Span A stands at 3,063.25, while the other one – Senkou Span B – stands at 3,145.00.
Probably the red kumo cloud might give cues for the downtrend in the bank stock, in technical terms. Concerns about hardening interest rates in the economy in the near terms might have also impacted market sentiment.
The outlook for the very short term seems negative, from the technical perspective.
Traders might refrain from taking fresh positions for the time being and may wait for taking fresh long positions around 2600 or 2650.
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