Nifty stages a comeback.........

Friends,
I am pasting here exactly what I read in ET today.....

Nifty stages a comeback, scales ‘500DMA’ resistance
Shakti Shankar Patra ET INTELLIGENCE GROUP


MUCH maligned in the recent past for gross underperformance compared to most of its global peers, the benchmark 50-share Nifty has made a dramatic comeback in the last few trading sessions. And in the process, has achieved something that none of the others have — re-conquered its 500 daily moving average (DMA) while most global indices continue to languish well below it. Though not as frequently talked about as some of its popular brethren, the 500 DMA is a very important long-term technical trend indicator — with life above it considered bullish and below it bearish. Its importance can be gauged from the fact that since conquering this key indicator in June 2003, the beginning of the last bull run, the Nifty never fell below it for the next five years. On rare occasions, the 500 DMA acted as a strong support and the Nifty invariably managed to bounce back strongly. However, this changed in June as the Nifty plunged below its 500 DMA for the first time in five years. Interestingly, this was the time when even the staunchest of the bulls threw in the towel and the bear market was, for all measures, confirmed. With Nifty conquering it back, bulls now have one more reason to celebrate. But they need to defend and build on it, if hopes of annexing the last and most important moving average — the 200 DMA, now at 5117 — are to be kept alive.

The picture is not all rosy though. As the adjoining table shows, most major global indices are well below their respective 500 DMAs — a clear sign that this is not the best of time for equity bulls. In fact, the only other major index above its 500 DMA — the Brazilian Bovespa — is consistently trending down and looks ready to plunge below it any moment. The fact that even the Sensex has still not managed to conquer its 500 DMA, only further complicates matters and makes the job of the bulls difficult. But given that the average major rally in the last bear market was for nearly 35% in around 3-4 months, the Nifty looks all set to retest its 200 DMA in a month or two, irrespective of whether we continue in this bear hug or manage to escape out of it.

My Comments:

I am all at Sea in technicals but the analysis habit to look whatever I read helps me sometime....but for that one has to read a lot and able to pick up what is written when he is reading……..but for that reading habit has to be cultivated…
I read a lot…….Lol…..I think many would read this news in ET today but ….


What is these 500 DMA?I never heard of 500 DMA....heard of 20 DMA, 50 DMA, 200 DMA but where this 500 DMA came suddenly from the blue?
But according to what written in the above text seems 500 DMA plays an important role in deciding the market course atleast in Indian Market, leave other markets…..

As it is said that 500 DMA is the most important support/resistance/levels for the market future course……Now coming to the next para wherein is written that Beware, “the Brazilian Bovespa — is consistently trending down and looks ready to plunge below it any moment”……it is actually written to misguide the investors or common man who only use to just read the paper and then believe what written is true and then comes out to argue…….
If Brazilian Bovespa is going to go below 500 DMA then it is a very very good sign for the whole world.It means that commodities prices will go down as the speculation in commodities is about to end…….as commodities prices will come down , Inflation world over will come down and slow down will be arrested …..

Cheers for the Brazilian Bovespa going down, friends!

I liked this news very much……I am not tracking Brazilian Bovespa recently but got to know about it while I read this………at one time Brazilian Bovespa was trading at over 55000……while India was just merely 21k…….and is now at 14700 after coming back from 12500 levels….India is a Great Value buy……
Crude is at $118.60 and Dow rushed to 331 points rally….seems the demand distruction is taking place too fast…..as crude is tanking so fast…….

Can't resist to write, which I recalled after I finished this post and that is if the crude speculation ends and so will commodities....where the money of the world over had gone in....then I heard at CNBC USA channel the otherday that over $ 3 trillion money will be back chasing equity ....getting out from commodities...I think I have not to write much now....
Time for Bulls to Massacre Bears ........