Friday's Outlook
July 03 (09:40) -European markets fell sharply last night, and the US indices also took a hammering. Asian markets are also down this morning, but have moved up from their session lows. The global short-term trend is down. We are therefore likely to see stocks fall today. [More]

Longer-term: Intermediate uptrend still on

July 03 (09:40) -The market is in an intermediate uptrend which started on June 23 at the sensitive index’s intra-day low of 14,017. The intermediate uptrend would end if the sensitive index were to fall below 14,017, the nifty below 4,143 and the CNX Midcap under 5,168.

The intermediate downtrend that preceded the current uptrend saw the sensitive index retrace just 20% of the previous uptrend’s 7,553-point gain. This may be considered to be a “healthy” correction, as most bull market retracements tend to fall between 33% and 50%. The implication is that the long-term demand for stocks continues to be strong at this point of time.

A majority of global markets are still in intermediate downtrends. The Hang Seng and the sensitive index are among the few which have already ended their downtrends. Shanghai did not enter a downtrend at all.

The market’s long-term trend is up, and this is also the case with about half the global indices.

There was no change in the major trend of any of the Hotline stocks on yesterday. Over 90% of the Hotline stocks are in long-term uptrends.