GOOD MORNING!!!
MARKETS CRACKED OVER ONE AND HALF A PERCENT IN THE OPENING TRACKING GLOBAL CUES THE GLOBE GOT ANNIHILATED ON THE BACK OF LINGERING PUBLIC PROTESTS IN EGYPT WHICH SHOWED LITTLE SIGNS OF DYING DOWN WHICH REMAINED HIGHLY UNSUPPORTIVE WHILE SOARING DOMESTIC INFLATION AND RATE RISE FEARS TOO WEIGHED. ADDING TO THE WEAK GLOBAL CUES ANOTHER POINT OF CONCERN IN THE MARKET WAS RUTHLESS POSITION SQUARING HAVE DONE SOME MORE DAMAGE TO THE MARKETS IN THE FIRST SESSION. AND IN THE SECOND HALF OF THE MARKETS JOURNEY WHEN INDICES CAME DOWN TO THE CRUCIAL SUPPORT LEVELS THERE WAS SOME SHORT COVERING WHICH PULLED THE MARKETS CLOSER TO THE NEUTRAL LINE. MARKETS BREADTH WAS WEAK. THE HIGH BETA, REAL ESTATE STOCKS ONCE AGAIN LANGUISHED AT THE BOTTOM OF THE SECTORAL LIST AFTER TUMBLING 2.23%, THE FMCG COUNTER TOO WITNESSED HUGE PROFIT BOOKING AS IT SHAVED OFF 2% ON THE FLIPSIDE, CAPITAL GOODS PACK WENT HOME WITH 3.26% GAINS ALONG WITH IT POWER STOCKS TOO SAW HUGE BUYING INTERESTS AS IT GAINED 1.31%
TODAY NIFTY WOULD TRADE IN A NARROW RANGE WITH RANGE BOUND ACTIVITY. IF NIFTY TRADES BELOW 5500 THEN LIKELY TO COME DOWN TO 5442 AND BREAK BELOW THIS LEVEL WOULD COME DOWN TO 5400 LEVELS AND ON THE FLIP SIDE IF NIFTY TRADES ABOVE 5550 THEN LIKELY TO MOVE UP TO 5590 LEVELS AND BREAK ABOVE THIS LEVEL WOULD TAKE NIFTY TO 5620 LEVELS ANY CLOSE ABOVE 5600 WOULD BE ON THE POSITIVE TRACK. ONE CAN SHORT NIFTY AT HIGHER LEVELS WITH A STOPLOSS OF 5625 LEVELS. WE CAN SEE ONE MORE LEG OF SELLING BUT THE INTENSITY OF SELLING IS PURELY TAKEN INTO ACCOUNT ON WHERE THE NIFTY IS TAKING SUPPORT AT, NIFTY CAN TAKE SUPPORT AT 5400, 5200 OR 4800 LEVELS SO ONE CAN TAKE CHANCE TO BUY PARTIAL QUANTITIES AROUND THESE LEVELS. IF YOU SEE BOUNCE BACK WE CAN GO FORWARD TO ONE OF THE BIGGEST BULL RUNS WE HAVE EVER SEEN. POSITIONAL INVESTORS SHOULD NOT REALLY BOTHER ABOUT THESE UPS AND DOWNS WHICH COME EVERY NOW AND THEN, FUNDAMENTALLY MARKETS HAVE NOT CHANGED ANYTHING AND WE HAVE A GOOD GOWTH STORY INTACT WE CAN HEAD MUCH AHEAD FROM THE LEVELS WHERE WE ARE CURRENTLY. BUT THERE ARE SERIOUS CONCERNS IN THE MARKET IN THE CURRENT SITUATION WITH THE CRUDE MOVING TO THE TWO YEAR HIGHS WHICH WILL HAVE GREATER IMPACT ON THE INFLATION IN TURN THE INTEREST RATES ONE HAS TO BE VERY CAUTIOUS FOR FRESH BUYS. WE ARE LIKELY TO FACE ONE MORE SELL-OFF IN A SHORT NOTE.
TODAY NIFTY WOULD TRADE IN A NARROW RANGE WITH RANGE BOUND ACTIVITY. IF NIFTY TRADES BELOW 5500 THEN LIKELY TO COME DOWN TO 5442 AND BREAK BELOW THIS LEVEL WOULD COME DOWN TO 5400 LEVELS AND ON THE FLIP SIDE IF NIFTY TRADES ABOVE 5550 THEN LIKELY TO MOVE UP TO 5590 LEVELS AND BREAK ABOVE THIS LEVEL WOULD TAKE NIFTY TO 5620 LEVELS ANY CLOSE ABOVE 5600 WOULD BE ON THE POSITIVE TRACK. ONE CAN SHORT NIFTY AT HIGHER LEVELS WITH A STOPLOSS OF 5625 LEVELS. WE CAN SEE ONE MORE LEG OF SELLING BUT THE INTENSITY OF SELLING IS PURELY TAKEN INTO ACCOUNT ON WHERE THE NIFTY IS TAKING SUPPORT AT, NIFTY CAN TAKE SUPPORT AT 5400, 5200 OR 4800 LEVELS SO ONE CAN TAKE CHANCE TO BUY PARTIAL QUANTITIES AROUND THESE LEVELS. IF YOU SEE BOUNCE BACK WE CAN GO FORWARD TO ONE OF THE BIGGEST BULL RUNS WE HAVE EVER SEEN. POSITIONAL INVESTORS SHOULD NOT REALLY BOTHER ABOUT THESE UPS AND DOWNS WHICH COME EVERY NOW AND THEN, FUNDAMENTALLY MARKETS HAVE NOT CHANGED ANYTHING AND WE HAVE A GOOD GOWTH STORY INTACT WE CAN HEAD MUCH AHEAD FROM THE LEVELS WHERE WE ARE CURRENTLY. BUT THERE ARE SERIOUS CONCERNS IN THE MARKET IN THE CURRENT SITUATION WITH THE CRUDE MOVING TO THE TWO YEAR HIGHS WHICH WILL HAVE GREATER IMPACT ON THE INFLATION IN TURN THE INTEREST RATES ONE HAS TO BE VERY CAUTIOUS FOR FRESH BUYS. WE ARE LIKELY TO FACE ONE MORE SELL-OFF IN A SHORT NOTE.
