Eoin Treacy, Global Strategist, Fullermoney.com, said both the Sensex and Nifty have re-tested their March supports. "They certainty haven't led on the upside as has been the case in the past. It looks like that this is just going to be a longer consolidation. I continue to believe that the January and March lows will hold but the recovery or convalescence is going to take a little bit longer on this occasion. It is just a case of time rather than that an extension pattern before the market moves lower."
Excerpts from CNBC-TV18’s exclusive interview with Eoin Treacy:
Q: Where do you see the Sensex and Nifty headed?
A: Both the Sensex and Nifty have re-tested their March supports. This has been a bit of a slow-burn recovery for the Indian markets. They certainty haven't led on the upside as has been the case in the past. It looks like that this is just going to be a longer consolidation. I continue to believe that the January and March lows will hold but the recovery or convalescence is going to take a little bit longer on this occasion.
A number of other markets in Asia have successfully tested their January lows and are trading well above those levels. They have gone onto make further highs, i.e above their February highs, and India hasn't quite done that yet. So, it is lagging. I do believe that it is just a case of time rather than that an extension pattern before the market moves lower.
Q: What about global markets? We have seen quite a bit of retracement in Dow and some of the other emerging markets this week. Do you think the rally of the last couple of months is stalling there or is this just a pullback?
A: This is probably just a pullback. We have definitely seen that particularly with the Dow, S&P and Nasdaq, the pullback over the last three days has been really quite sharp. So, it has capped the advance in the short-term.
We are probably in for a couple of weeks of consolidation here. The price of oil is on everyone’s lips at the moment and oil remains very consistent. As long as oil prices continue to push upward, that is going to be headwind for stock markets globally.
Q: What do you see on the charts for crude?
A: Crude remains remarkably consistent. When you look at the charts there you see a remarkable staircase and a step sequence. No step has dipped back into the other. The trend is starting to pick up pace. We cannot say when this move is going to end. But we know that we are approaching an ending because it is picking up pace.
It is looking like we are going to see further acceleration in the oil price and it would really need quite a sizable downward reaction to offset scope for that to move significantly higher.
Source: Moneycontrol.com
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment