GOOD MORNING!!!
MARKETS STARTED THE DAY ON AN OPTIMISTIC NOTE TRACKING THE ASIAN PEERS WHICH TRADED MOSTLY IN THE GREEN FOLLOWING THE UPBEAT OVERNIGHT CUES FROM THE WALL STREET WHERE COMPANIES POSTED BETTER THAN EXPECTED EARNINGS REPORTS ALONG WITH SOME TAKEOVER AND SHARE BUYBACK ANNOUNCEMENTS. THE FRONTLINE INDICES MANAGED TO BUILD ON TO THE EARLY GAINS IN THE FIRST HALF OF TRADE AS THEY TOUCHED THE INTRADAY HIGH LEVEL AND MAINTAINED ALMOST TILL THE RBI POLICY WAS ANNOUNCED SOONER THE RBI’S KEY INTEREST RATE HIKE BY 25 BASIS POINTS WAS ANNOUNCED INDICES MADE A NEW INTRADAY HIGH BUT AFTER SOMETIME MARKETS STARTED DRIFTING LOWER TO THE LOW POINT OF THE DAY IN THE DYING MINUTES AND SHUT INDICES WITH CUTS OF AROUND A PERCENT. VOLUMES FOR MARKETS STAYED SUBSTANTIALLY HIGHER THAN THE PREVIOUS DAY. THE MARKET BREADTH COMPLETELY CHANGED 180 DEGREES FROM THE MORNING SESSION FROM POSITIVE TO VERY NEGATIVE. THE RATE-SENSITIVE BANKING, REALTY AND AUTO STOCKS REMAINED HIGHLY UNSTABLE ON THE BOURSES AND THEY DID A BULK OF THE DAMAGE
TODAY MARKETS WOULD TRADE ON A HIGHLY VOLATILE NOTE AHEAD OF EXPIRY OF CONTRACT OF JANUARY. IF NIFTY TRADE BELOW 5676 THEN LIKELY TO COME DOWN TO 5650 LEVELS AND ANY BREAK BELOW THIS LEVEL WOULD TAKE NIFTY TO 5619 LEVELS ANY CLOSE BELOW 5600 WOULD TAKE NIFTY TO 5400 IN A VERY SHORT TIME IN THE DAYS AHEAD BE VERY CAUTIOUS ON POSITIONAL FRONT, AS LONG AS NIFTY TRADES ABOVE 5600 THEN THERE IS EVERY POSSIBILITY FOR NIFTY TO BOUNCE BACK. ON THE POSITIVE NOTE IF NIFTY TRADES ABOVE 5700 THEN LIKELY TO MAKE AN UPMOVE TO 5738 LEVELS AND BREAK ABOVE THIS POINT WOULD TAKE IT TO 5760 LEVELS. MARKETS WOULD CLOSE AROUND 5700 LEVELS TO THE MAXIMUM. THERE WOULD BE VERY ERRATIC MOVEMENTS IN THE MARKETS, SO DON’T GET TRAPPED ON INTRADAY FRONT STAY CAUTIOUS.
TODAY MARKETS WOULD TRADE ON A HIGHLY VOLATILE NOTE AHEAD OF EXPIRY OF CONTRACT OF JANUARY. IF NIFTY TRADE BELOW 5676 THEN LIKELY TO COME DOWN TO 5650 LEVELS AND ANY BREAK BELOW THIS LEVEL WOULD TAKE NIFTY TO 5619 LEVELS ANY CLOSE BELOW 5600 WOULD TAKE NIFTY TO 5400 IN A VERY SHORT TIME IN THE DAYS AHEAD BE VERY CAUTIOUS ON POSITIONAL FRONT, AS LONG AS NIFTY TRADES ABOVE 5600 THEN THERE IS EVERY POSSIBILITY FOR NIFTY TO BOUNCE BACK. ON THE POSITIVE NOTE IF NIFTY TRADES ABOVE 5700 THEN LIKELY TO MAKE AN UPMOVE TO 5738 LEVELS AND BREAK ABOVE THIS POINT WOULD TAKE IT TO 5760 LEVELS. MARKETS WOULD CLOSE AROUND 5700 LEVELS TO THE MAXIMUM. THERE WOULD BE VERY ERRATIC MOVEMENTS IN THE MARKETS, SO DON’T GET TRAPPED ON INTRADAY FRONT STAY CAUTIOUS.
