Thursday, August 7, 2008

Mr. Bhavesh Rathod(Anna)'s Comments to Udit’s Response

first thank you udit for sharing your views,These questions need to be answered. hope u will continue asking more question for naveen we say that Indian stock market has not done well in recent times...Reasons we all know, but if we compare the whole of Asian markets the bloomberg article which says Asian Stocks Gain Most Since April...How is the Indian story different?? Do you think that the perception of India as a investor friendly destination is changing??

My Opinion

First thanks for starting discussion to all my readers…

Anna, according to me (technical analysis) it all depends on when our markets are bottomed up comparatively other Asian Giants. See every country has got its own problems and those problems reflects in the prices of the shares (Basic assumption of technical analysis is price interprets everything). As we all know that China and Indian are worst hit Asian markets. And we have (or had) own problems like Inflation, Political Instability (Left’s continuous threat of withdrawing), Monson and etc. It all reflected in the graph with SMA (Simple Moving Average) which I am providing for your reference. Please have look at it.

See anna, first 3 graphs are of other Asian countries like Japan, Hong Kong and Singapore. And last graphs are China & India.

Now analyzing the Japan’s Nikkei Charts, it has exactly bottomed in April. It has a major support at 12000 level (see the arrow mark) which occurred in March – April. So from that point they saw slight pull back.

It is same with the Hang Sang they have bottomed up in March end and they have major support at 2100.

STI also seems to be bottomed in March end 2800 level.

But for China and India, the SMA is not showing any Major Support in the graph. It means they may not have bottomed up till now. Of course sensex is showing that it might have bottomed up at 12800 levels but it is not supported by charts.

So I think you might have got answer……..

For more clarification, again write to me…..

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