GOOD MORNING !!!
INDICES FAILED TO CARRY THE MOMENTUM FROM LAST DAYS PULL BACK AND GOT OFF TO A WEAK START. THE INDICES TRADED IN THE NEGATIVE TERRAIN IN THE INITIAL HOURS AS INVESTORS LACKED ENTHUSIASM AND CONTINUED TO BOOK PROFITS AS THEY CONTINUED TO UNDERPERFORM EVEN AS ASIAN MARKETS TRADED WITH SOME STRENGTH. INDICES THOUGH RECOVERED A BIT IN THE LATE FIRST HALF BUT THE SUSTAINED SELLING PRESSURE THEREAFTER ENSURED THAT THE MARKETS SETTLE INTO DEEP RED. IT TURNED OUT TO BE A LACKLUSTER FOR THE MARKETS AS THEY RETURNED TO THE SELL-OFF MODE JUST A DAY AFTER BREAKING THE STREAK OF CLOSING IN THE RED AFTER SIX TRADING SESSION. THE THREE I’S (INTEREST, INFLATION AND IIP) MADE A HAVOC IN THE MARKETS ANOTHER I INFOSYS’ JOINED TO SPOIL MUCH MORE IN THE INDIAN MARKET. INFOSYS DISAPPOINTING THIRD QUARTER RESULTS REMAINED THE BIGGEST DAMPENER FOR THE MARKET. BANKING WAS THE BIGGEST LAGGARD IN THE SECTORAL INDICES AS BANKING MAJORS LIKE SBI, ICICI AND OTHER HAVE PLUNGED THE MOST. SOFTWARE TOO REMAINED UNDER IMMENSE PRESSURE. EXCEPT FOR THE REALITY ALL THE SECTORS WERE IN DEEP RED.
TODAY, WE MAY SEE SOME ERRATIC MOVES IN THE MARKETS, IF YOU SEE BROADLY MARKETS ARE HOVERING IN A BROAD RANGE OF 100 POINT IN A SINGLE DAY. ONE IS ADVISED TO STAY CAUTIOUS AND TRADE WITH LESS QUANTITY AS IT WILL PLACE YOU IN A POSITION WHERE YOU CAN TAKE DECISION WISELY ON INTRADAY FRONT. IF NIFTY TRADES BELOW 5740 THEN LIKELY TO COME DOWN TO 5700 THIS IS A SHORT TERM SUPPORT WHERE MARKETS WILL TRY TO STAY ABOVE THIS LEVEL BUT ONCE THIS LEVEL IS CUT THE WE CAN HEAD DOWN TOWARDS 5640 LEVELS BUT IF IT IS BROKEN THEN WE CAN SEE NIFTY TO BLEED DOWN MUCH FURTHER SO ONE SHOULD BE VERY CAUTIOUS IF NIFTY CLOSES BELOW 5640 LEVELS. ON THE FLIP SIDE IF NIFTY TRADES ABOVE 5775 WE CAN SEE NIFTY TO MOVE UP TO 5810 LEVELS AND ABOVE THAT ONE CAN SEE FURTHER UPSIDE TO 5840 LEVEL, ANY TRADE ABOVE 5840 WE CAN SEE NIFTY TO MOVE UPTO 5875 AND ANY CLOSE ABOVE 5875 WE MAY SEE NIFTY TO BE ON A POSITIVE SIDE.
