My view for tomorrow: WE had a very good rally on friday (for which we will mostly cool off tomo morning from overbought zone) but was it one off, like the final to 6300 ? As I had mentioned several times earlier 1 more rally is pending which gave me complacency with my longs but now Its on & thus I would be very very cautious till we break 4650 with good force...
reason being we are in a weekly uptrend since 4539 was broken around 6.8.8 & to maintain that we now need to breach 4650 significantly otherwise a scenario of lower or double weekly top will arise, until now this is a test of that 4650 top... 14,500 on sensex should not break on closing IMHO till then I would very cautiously watch the hourly or daily for any sign of reversal to close my longs...
This rally is short coverings mostly till now, but now does it have stronger hands to support. Fundamentally I see nothing good except crude coming down,
but till the time S&P (US) hangs out between 1261 & 13xx we will survive, we cannot sustain our own bull market in global weakness... watch for a break of 1260 in US S&P its awfully close.. if that happens, I suspect we will follow suit... Personally I have already shifted 50% stocks to defensive sectors rather than those which have rallied a lot on friday
Disclaimer: consult your own Cartoon Network Business Channel analyst before following above advice & that too at your own painful risk