Perspective : On Friday afternoon, before our markets closed we had profiled the SPX, which was a market trying to establish balance.We did say that the overnight cues from that market would influence our open on Tuesday.
On Friday, whilst traders on the NSE chose to close their long positions, the traders on the NYSE chose to retain them and the market showed short covering on Monday.
It remains to be seen if the overnight gains in our market can last beyond the IB hour or we see a repeat of the moves of the SPX.The SPX chart is below :
SPX Cash Market :
Back Ground :-
1) Huge gap between 5325 and 5233 which is a single print seller.
2) A failed auction at 5233
Chart Speak :
1) Friday was a Double distribution ( DD ) day.
2) We consider a DD to be two separate auctions.
3) Overnight sentiment based on SGX is long and shows an open in the upper distribution.
4) 5185 is PR3 for the day. PR2 at 5143 will be first sign of weakness till 5100.
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