GOOD MORNING!!!
THE MARKETS OPENED ON A FIRM NOTE TRACKING ASIAN STOCKS WHICH ROSE AFTER IRELAND ON SUNDAY, 21 NOVEMBER 2010, FORMALLY APPLIED FOR AID FROM THE EUROPEAN UNION AND THE INTERNATIONAL MONETARY FUND. A BOUT OF VOLATILITY WAS WITNESSED AS THE KEY BENCHMARK INDICES LATER PARED GAINS. MARKETS TOOK OFF AGAIN IN THE MID-MORNING TRADE THERE WAS GREAT AMOUNT OF FIRMNESS SEEN IN AFTERNOON TRADE. THE MARKET STRUCK A FRESH INTRADAY HIGH IN AFTERNOON TRADE. BUYING INTENSIFIED IN THE MID-AFTERNOON TRADE. INDICES BOUNCED BACK FROM TWO-MONTH LOWS AS INVESTORS EMBRACED RISK, BUOYED BY NEWS THAT THE EUROPEAN UNION AND THE INTERNATIONAL MONETARY FUND ARE PREPARED TO PROVIDE AID FOR DEBT-LADEN IRELAND FOLLOWING THE COUNTRY'S FORMAL REQUEST FOR ASSISTANCE. THE STRONG BUYING MOMENTUM HELPED NIFTY SURPASS THE PSYCHOLOGICAL BARRIER OF 6,000 MARK. ALMOST ALL THE SECTORAL INDICES ON THE WERE IN POSITIVE ZONE. BANKING, CONSUMER DURABLES AND IT STOCKS LED THE RALLY. CAPITAL GOODS AND HEALTHCARE STOCKS LAGGED THE RALLY. MARKET BREADTH INDICATING THE HEALTH OF THE MARKET, WAS STRONG.
TODAY IF NIFTY TRADES ABOVE 6020 THEN LIKELY TO MAKE ITS UPWARD JOURNEY TO 6045 AND THEN TO 6070 LEVELS AND ANY BREAK ABOVE 6070 IT WILL IMMEDIATELY TAKE NIFTY TO 6090 AND ANY BREAK ABOVE THIS POINT WE CAN SEE NIFTY TO MUCH HIGHER LEVELS, ANY CLOSE ABOVE 6035 IS CONSIDERED TO BE BULLISH AND ONE IS ADVISED TO EXIT ALL SHORTS AND CONVERT YOURSELF INTO LONGS. ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 6000 THEN LIKELY TO MAKE ITS DOWNWARD JOURNEY TO 5974 AND BREAK BELOW THIS LEVEL WILL DRAG NIFTY TO 5945 LEVELS AND ANY TRADE BELOW 5945 WILL TAKE NIFTY TO 5900 LEVELS ONE IS ADVISED TO STAY CAUTIOUS AS THERE WOULD BE HIGH VOLATALITY AS WE ARE NEARING EXPIRY. ONE IS ADVISED TO SHORT IF NIFTY TRADES BELOW 6035 LEVELS WITH A STOPLOSS OF 6035 AND CONVERT TO LONG IF IT IS ABOVE 6035 LEVELS. IN THE NEAR-TERM, YEAR-END PROFIT TAKING MAY CAP THE UPSIDE ON THE DOMESTIC BOURSES. A NUMBER OF STOCKS HAVE CLOCKED DECENT TO STRONG GAINS THIS YEAR. FUNDS BASED IN US AND EUROPE FOLLOW CALENDAR YEAR AS THEIR ACCOUNTING YEAR. STAY VERY CAUTIOUS.
ONE IS STILL ADVISED TO STAY AWAY FROM LONGS DON’T BUILD IN TOO MANY POSITIONS IN THE MARKETS AS THERE IS NO MUCH STRENGTH SEEN EVEN AFTER STOCKS RALLIED QUITE HIGH LAST DAY, THERE IS EVERY POSSIBILITY THAT MARKETS MAY COME DOWN ALL OF A SUDDEN SO DON’T TAKE TOO MANY POSITIONS BUT BE WITH THE TREND.
