Tuesday, February 7, 2012

EOD Analysis For 7th February 2012 and Outlook For 8th February 2012

A very positive start to the day but most of the gains were given up by the end of the day. Technical oscillators are showing negative divergence but IMHO it is still too early for bears to rejoice. Corrections will be healthy for the market but bulls may just pick some steam up if global cues come in favor [albeit temporary] of the headwinds.

Critical levels and outlook remain unchanged. Today was the 6th consecutive close above the critical 5177-5196 band and hence the downside may be limited to these levels until Thursday EOD. To the extent the 4880-4911 band is intact, my outlook is that the scale is in favor of bulls [it doesn't matter what my personal view is but what is shown on the ticker is the reality!]

As usual, the advice is to take hedged positions and drop losing legs only after a trend is confirmed.

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