Last week, 4 days out of 5 days market came down from almost 5300 levels to sub 5000 level. That is almost 300 points in 4 days in Nifty and more than 1000 points in broadly tracked index Sensex. Last 2 days fall mainly due to unexpected results from L&T and US president Mr. Barrack Obama's statement regarding investment banking & their proprietary trading issue.
Because of Obama's statement Dow Jones and S&P index fell more than 2% on Friday.
So does our market is also expected to open with gap down on Monday. So the question is does market is going to hold 100 days moving average level of 4940/4950 levels.
There are various factors which may trigger down side of market like RBI's monetary policy announcement during this week, budgetary expectations Vs fiscal deficit control, global markets movements, fear of double dip recession.
But one thing for sure that any correction should be taken as entry for medium & long term investment. Because I believe (As usual) market always moves 2 steps ahead & 1 step backward.
And if you see the below graph, from November low levels it is exactly resembles Dow theory.
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