what I have been able to analyse is as follows:

The analysis is based on technical parameters and need knowledge of chart reading and interpretations. This requires specialised knowledge that is available in many books,but perfected with experience..........One thing is very simple and easily understood by all of us .......THE BOTTOMS........every time market gets lower, it makes a bottom and start trying climb up and again the same process repeats.

It can easily be observed that a critical bottom was formed on 27th Oct 2008 valued 2250 for Nifty index. As we moved further next bottom was formed 2500 on 20th Nov,2008 the third and the recent one 2810 on 29th Dec,2008........ may be market can go on its way up sustaining and absorbing the selling bouts those keep coming from the bears and pessimists.

This really is no indication of market going up one way....but for sure indicates market finding its ground for medium term.

Technically we call it a trend line in a making. we need minimum three points to make a trendline and we have found them.......now will the market respect this trend ?, This is a matter of time test in next few weeks.

what I do when these conditions ?

I become alert and start finding black horses whos will be first to take a lead....remmemeber old front runner horses may not lead this time.

Time still is to be careful .We can be bullish with strict stoploss around 2975 index value. Its time not to short in my opinion.

In stockmarkets winning needs longterm vision,patience and watchfullness......the markets stand on virtual supports so we need to make an investment plan/trading plan and strictly impliment the same .

PLAN YOUR TRADE.........TRADE YOUR PLAN

more another time

Happy investing

SAM

Note:
1. The above said matter is not an investment advice.

2. You are adviced to take help of an investment expert before taking any such decisions.

3. Investments in stockmarkets are inherently associasted with risk of loss of capital unless carefully monitored.