Friday's Outlook
May 09 (10:10) -European markets were mixed and little changed last night, while the US indices made moderate gains. However, Asian markets are down this morning, and the global short-term trend remains down despite the rally in the US. This could mean a continuing decline in our market too.
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Longer-term: Intermediate uptrend being tested

May 09 (10:10) -The nifty opened almost 40 points lower, and remained inside a 40-point range for the rest of the day. It closed in the middle of the day’s range. The CNX Midcap followed a similar course.

The indices are still in an intermediate uptrend. The uptrend has been quite persistent until now, being started on March 18 when the sensex hit a low of 14,677. The levels below which the uptrend would end remain at 16,589 for the sensex, 4,991 for nifty, and 6,797 for the CNX Midcap.

The intermediate uptrend coincided with a global one. The Dow rose to its highest level for the calendar year, and above its 200-day moving average. A few other global indices also climbed above their 200-day moving averages during the uptrend. However, markets are falling now, and the uptrend is under threat.

For the moment though, most global markets are still in major (long-term) downtrends, which means that a global bull market has yet to be confirmed.

All our indices are also in major downtrends, though the sensex, nifty and CNX Midcap had also closed just above their 200-day moving averages before falling. The major downtrend (bear market) would end if the sensex closes above its last intermediate top of 18,895, the nifty above 5,545 and the CNX Midcap 7,814.

The major trend of GE Shipping turned up yesterday.