Well, no one is sure about it. But after the historical massacres on 21st and 22nd January ,which shaken all the trust and confidence of the investors, it was difficult to hope for a recovery.
The recovery seems arrived sooner than expected. Today ,not unlike Monday and Tuesday, the Bombay Sensitive index made another historical record ,in a pleasant way , by the way of gaining about 1140 points (6.62%) in a single day.
Technical analyst were expecting a bounce back. During mid January’08, RSI (Relative Strength Index) indicated overbought situation and also showed negative divergence. Therefore, some sliding towards the centerline was expected. However, the sudden huge slide for two consecutive days brought the market in oversold situation. After today’s rise, RSI indicates positive divergence, hardly keeping the nose above water,at around 35.
So, looking to the buoyancy displayed by the market, bull run seems in order , of course, subject to the global cues and other factors.
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