Market up on short covering...July 18, 2008

Market witnessed a good rally yesterday on the back of short covering. What is important to note here is that the upmove is driven by short covering and not due to a fresh buying interest. So momentum is still down. We will continue to short this market on each rise until there is a real sign of a reversal. Today, we will see RPL charts..Stock has broken down nicely from a symmetrical triangle. One can short this for a target of 140. This is a positional short.

Today, we have positive cues to start with. The cooling crude, lesser than expected inflation, +ve world market. So we will open gap up...will we sustain a higher close??