Current Status of Market and future directions

1) Foriegn inflow is improving consistently so far bring confidence to wounded retailers. Which is a good sign

Today ( 22nd February ) too we notice foriegn inflow of around 450 Mil.

VALUE OF TURNOVER (Rs.) 1,524,961,408.00
DOMESTIC PURCHASE 1,035,192,064.00
DOMESTIC SALES 1,484,091,520.00 1
FOREIGN PURCHASE 489,769,312.00
FOREIGN SALES 40,869,936.00

2) There appears to be improving concentration on value stock than speculative counters. But yet to see a huge trend. Also MPI is gradually increasing. Which is a good sign.

3) Last few days we noticed less panic selling and improved buying. Turnover was over Rs 1 billion on last several days. Which is a good sign.


Possible Negative signs:

1) We are on the first resistance level. If people start panicking and selling for short term profit market can start heading down again
2) If the foriegn inflow and institutional buying stops for a while, retailer might panic again
3) They were see some fundamental counter increasing little by little, but heavy weights including giants have not moved much ( COMB.N, DFCC )

4) It would be good if market stabilizes now. But if the resistance around 5400, 5600 and 5800 are broken quickly we might head to ASI 6000. WHich is in a way good. But if it happens too quickly watch out as market can come down fast for profit taking and a correction too quickly. Also there is the issue of some counters not having moved yet. So if there is a down trend the already wounded counters which did not see major movement can be hit further to go down even more.


Overall the market sentiment and trend so far is encouraging and positive.

Let hope atleast the this trend ( gradually and not huge jumps) continues for the short term so the wounded retailers can find some short term relief. Please do not gamble with junk too much. Higher it will go, more they will fall in down trend bringing market and also other shares with them again.

Lets hope the trend holds tomorrow and this week. Hope people will not start to panic tomorrow to sell for profit as it will kill the trend. If this happens who knows. We have seen what retailer panic and margin selling ( the news to curtail margin calls is not official yet so it is still rumor stage) can do to the market.

Lets think ,act and hope positive but be wise and cautious.

slstock wrote:
1) Foriegn inflow is improving consistently so far bring confidence to wounded retailers. Which is a good sign

Today ( 22nd February ) too we notice foriegn inflow of around 450 Mil.

VALUE OF TURNOVER (Rs.) 1,524,961,408.00
DOMESTIC PURCHASE 1,035,192,064.00
DOMESTIC SALES 1,484,091,520.00 1
FOREIGN PURCHASE 489,769,312.00
FOREIGN SALES 40,869,936.00

2) There appears to be improving concentration on value stock than speculative counters. But yet to see a huge trend. Also MPI is gradually increasing. Which is a good sign.

3) Last few days we noticed less panic selling and improved buying. Turnover was over Rs 1 billion on last several days. Which is a good sign.


Possible Negative signs:

1) We are on the first resistance level. If people start panicking and selling for short term profit market can start heading down again
2) If the foriegn inflow and institutional buying stops for a while, retailer might panic again
3) They were see some fundamental counter increasing little by little, but heavy weights including giants have not moved much ( COMB.N, DFCC )

4) It would be good if market stabilizes now. But if the resistance around 5400, 5600 and 5800 are broken quickly we might head to ASI 6000. WHich is in a way good. But if it happens too quickly watch out as market can come down fast for profit taking and a correction too quickly. Also there is the issue of some counters not having moved yet. So if there is a down trend the already wounded counters which did not see major movement can be hit further to go down even more.


Overall the market sentiment and trend so far is encouraging and positive.

Let hope atleast the this trend ( gradually and not huge jumps) continues for the short term so the wounded retailers can find some short term relief. Please do not gamble with junk too much. Higher it will go, more they will fall in down trend bringing market and also other shares with them again.

Lets hope the trend holds tomorrow and this week. Hope people will not start to panic tomorrow to sell for profit as it will kill the trend. If this happens who knows. We have seen what retailer panic and margin selling ( the news to curtail margin calls is not official yet so it is still rumor stage) can do to the market.

Lets think ,act and hope positive but be wise and cautious.

Agree with SLS..
Today market shows it strength to touch ASI5600 with strongly breaking 5400... Tomorrow is critical for the direction in short run.. will see how that behave...

slstock wrote:
1) Foriegn inflow is improving consistently so far bring confidence to wounded retailers. Which is a good sign

Today ( 22nd February ) too we notice foriegn inflow of around 450 Mil.

VALUE OF TURNOVER (Rs.) 1,524,961,408.00
DOMESTIC PURCHASE 1,035,192,064.00
DOMESTIC SALES 1,484,091,520.00 1
FOREIGN PURCHASE 489,769,312.00
FOREIGN SALES 40,869,936.00

2) There appears to be improving concentration on value stock than speculative counters. But yet to see a huge trend. Also MPI is gradually increasing. Which is a good sign.

3) Last few days we noticed less panic selling and improved buying. Turnover was over Rs 1 billion on last several days. Which is a good sign.


Possible Negative signs:

1) We are on the first resistance level. If people start panicking and selling for short term profit market can start heading down again
2) If the foriegn inflow and institutional buying stops for a while, retailer might panic again
3) They were see some fundamental counter increasing little by little, but heavy weights including giants have not moved much ( COMB.N, DFCC )

4) It would be good if market stabilizes now. But if the resistance around 5400, 5600 and 5800 are broken quickly we might head to ASI 6000. WHich is in a way good. But if it happens too quickly watch out as market can come down fast for profit taking and a correction too quickly. Also there is the issue of some counters not having moved yet. So if there is a down trend the already wounded counters which did not see major movement can be hit further to go down even more.


Overall the market sentiment and trend so far is encouraging and positive.

Let hope atleast the this trend ( gradually and not huge jumps) continues for the short term so the wounded retailers can find some short term relief. Please do not gamble with junk too much. Higher it will go, more they will fall in down trend bringing market and also other shares with them again.

Lets hope the trend holds tomorrow and this week. Hope people will not start to panic tomorrow to sell for profit as it will kill the trend. If this happens who knows. We have seen what retailer panic and margin selling ( the news to curtail margin calls is not official yet so it is still rumor stage) can do to the market.

Lets think ,act and hope positive but be wise and cautious.

very well said

Dear readers of this tread.....

My charts shows.......

Tomorrow is the day to decide the market direction in short run which will create winners or losers

I dont know where it's heading but know importance of heading

Let's wait and see

Good Luck for Safe trading

Well said slstock. If our retailers panic, all we have 2 pay da penalty. Every one should read this article, Thnkx 4 shring

Thanks!

SL.Market wrote:Dear readers of this tread.....

My charts shows.......

Tomorrow is the day to decide the market direction in short run which will create winners or losers

I dont know where it's heading but know importance of heading

Let's wait and see

Good Luck for Safe trading

Dear SL Market
Do u see any resistance at the current ASI level in your charts ? i did saw we are the Fibonacci 38.2% but i have a feeling ASI will break it, anyway please do share with us what is the factor you considering

Thanks

True and thanks for sharing.

The thing is people who bought lately are on good profit now. The slightest panic will encourage them to sell, to book profits.

market is pending some news on abolition of price band and some other discussed by brokers and SEC.. however, overall economic condition of the country has not changed. Sri Lankan economic status is not that good as many research reports emphasized that increased trade deficit can cause many problems in near future..

gys
Fibonaci analysis is a fantastic technique....any way i wonder when fibonaci came with the rabbit family solution he everthought of us making predictions on fibonaci.....anyway yes its the direction setter...lets see and lets do our part

econ wrote:market is pending some news on abolition of price band and some other discussed by brokers and SEC.. however, overall economic condition of the country has not changed. Sri Lankan economic status is not that good as many research reports emphasized that increased trade deficit can cause many problems in near future..

Yes, you are correct and unless the economic conditions improve (which I have my doubts), things can turn ugly again soon.

Recent company growth results are mostly below average or negative. One reason is most of the companies made money by stock trading or account book magic not by the core business.

See what happened when the rupee was artificially kept up. What happens when you do the same thing to the stock market, when the artificial buying stops. The reaction will be severe.

thanks for sharing SLS

Happy to say that Bears are beaten by strong bulls today...

Only question is how long will they continue...Hope they do the same at ASI 5600...

Good Luck

1) Still foreign inflow continuing. Rs 530+ Mil.
23rd feb 2012

FOREIGN PURCHASE 581,472,768.00
FOREIGN SALES 51,524,568.00

2) Turnover over 3.5 Bil. Record forth year. Mainly helped by LFIN and SPEN. Part of LFIN could be an internal transfer.

Now to watch around ASI 5500- 5600

Thanks for sharing....

Today i also hope that panic selling would destroy the market.Nothing happened as expected.Foreign inflow also high...good sign

[quote="slstock"]

1) We are on the first resistance level. If people start panicking and selling for short term profit market can start heading down again