Is Santa Clause Rally in Offing In Indian Stock Market?

1. Indian stock markets have not given negative returns since year 2000 and Christmas has always come as a breather due to the fact that people tend to consume more, invest for tax breaks and more importantly, pessimists stay on vacation during this week. If we look at History year 2003, 2004 or even 2006 have helped the Sensex to gain between 3% and 6% and this has happened between Christmas and New Year.


2. One might see an attempt for the Sensex to stage a pull back which at best will last till 14 Jan 2009 when the fresh quarterly results will start appearing which is more or less going to be below expectations. Thus one can use the opportunity to book profit and sty with cash in present rally if it occurs. Another reason for cheer is that the US markets will remain closed in the next week and thus Asian markets need not look up to any other exchange and can thus rally. Nifty has to cross 50 DMA 2908 Nifty level to come out of the dead woods and thereafter it can target the levels of 3050. One can read more about the prevailing trend in Share Market of India

Simple Moving Averages

Fibonacci price projections