MARKET UPDATE

NIFTY has held its support of (18,465) and NIFTY BANK has held (43,700) so things are fine for now. Weakness would emerge only below these levels else not. NIFTY has got closer to the upper boundry of (18,800) which we discussed earlier. My hometown is likely to get impacted by CYCLONE so lets discuss what happens if NIFTY makes a new high above (18,887) In a low probablity event for any reason if NIFTY makes a new high then it would behave exactly like NIFTY BANK, the another high would again be within 1% from (18,887). Lets see, short term TIME CYCLES are placed neutral to positive until friday. MARKETS are getting support from strength in U.S. MARKETS so once U.S. MARKETS TOP out other MARKETS including INDIAN MARKETS should end this phase and activity should pick up mainly from next week. many CYCLE ANALYSTS have tried to predict the TOP for U.S. MARKETS but all of them including me have so far not been successfull. I think many of us have been impatient, yes few CYCLES have extended abnormally but the most logical thing from here would be to wait for seasonal CYCLES to turn which would turn after 21st,june. Historicly when individual CYCLES disconnects with PRICES it’s always NATURAL CYCLES who brings that alignment back between PRICE and TIME. U.S. MARKETS are at extreme levels especially NASDAQ I don’t mind the valuations that’s not my subject, I monitor CYCLES and basic character of CYCLES is, (An extreme on one side is always followed by extreme on opposite side).