Sensex MACD in Buy near Positive Territory again

The benchmark Index, moved into a buy again after a lengthy A-B-C type of a correction. The move up on 26th November 2012 is a very typical burst when an important index is in positive territory. The upmove should continue now for quite a while.

Index resuming normal uptrend. Sensex and Nifty well placed before Diwali

The benchmark indexes have indeed turned up just before Diwali. All it needs now is a good push and we are again on the way up. A buy signal here is a powerful one since MACD is in the positive territory and a possible move up will be very strong.

Nifty in corrective mode, to turn up once the MACD curve turns up

Nifty and Sensex are currently in corrective mode. The main reason is that MACD had turned down. Also, there were gaps around 18000-18300 area. The Indexes are currently trying to fill those gaps.

Markets will be dull for a while and will turn up first and then give a buy. This is likely to happen during Diwali.

Sensex, Nifty to confirm Bullishness

Sensex is currently moving up logically after testing the trendline support. It needs confirmation of 18524 to truly head upwards. After that, a lot is possible. Nifty is also similarly placed.

Nifty still strongly placed, MACD buy in positive, huge rally possible

Nifty is still in a strong position. A possibility of a great run is open since MACD is in a buy mode in the positive territory. The chart is weakening somewhat on 3 month charts, but it is quite normal on longer term chart, say 1 year and 3 years. One should stay long with a stop loss of 5130.

Index Futures and Factors for today's trading

DJIA INDEX		13,062.00	+7.00
S&P 500		1,391.30	+2.30
NASDAQ 100		2,682.75	+11.75

 At approximately 5:30 AM

• Mario Monty warns about Euro breakup
• Mixed opening expected for markets today
• European stocks gain on Greek debt news

RBI Policy

The Reserve Bank of India is widely expected to cut rates by 25 bps tomorrow. The markets have rallied a bit on this expectation. It remains to be seen if this happens in reality.

Nifty to resume uptrend after Stochastics goes into buy

Nifty is currently correcting and filling the gap that was formed a couple of weeks back. It will resume sharp uptrend after Stochastics gives a Buy signal. MACD is placed in the positive territory even now. A Buy signal will be a good boost at this point.

Chart courtesy: Yahoo Finance

Trading and Investing factors

 Factors for the day

• Dow, Nasdaq and S and P futures moderately up
• Rajoy spells out budget cut details amounting to 65 Billion Euros to fight crisis
• Peter Sauer, BofA executive and ex-Hoops star dies
• Europe markets down on Earnings worries, Asia markets swinging between losses and profits
• Profit warnings from US companies

Today's factors for Trading and Investing

Factors for the Week and Today:

• September Index futures take a hit - DJIA (Dow Jones), S&P, and Nasdaq all down at 4 AM 
• Spain gets ready for a third austerity measure round as the Spanish Prime Minister Mariano Rajoy hints at such a development
• Euro and shares under pressure
• June Quarter Earnings in focus
• Internet blackout on Monday?
• China demand falling (indications from Inflation)
• Emerging markets under hug pressure, big drops

Factors affecting trading today

Global:

• Relief after Greece Election results. Elected party supports bailout and is willing to work with Euro countries. Rallies in some markets. Euro jumps to 1 month high and so does Nikkei.
• Spain and Italy continue to worry
• Fed not seen to take any major action. Bears may seize this chance.
• Gold dips after Greek election news
• Oil (Brent) below day's high
• China home prices drop lower and also deeper
• Indian markets collapsed after advancing after the RBI leaves interest rates unchanged.