GOOD MORNING!!!
MARKETS YET AGAIN TAKEN TO A TOSS AFTER CLOSING THE FIRST DAY OF THE FEBRUARY MONTH ON A FIRM NOTE. BREADTH OF THE MARKETS HAS SHOWN NO INTENTIONS OF BOUNCING BACK AND CONTINUED ITS DOWNWARD JOURNEY WITH INTENSE SELLING. THOUGH, THERE WAS SOME KIND OF SHORT COVERING IN THE AFTERNOON SESSION COULDN’T REALLY HOLD ITS GAINS AS INVESTORS YET AGAIN TOOK PROFITS OUT OF THE TABLE LEADING TO THE FALL IN MARKETS AND EVENTUALLY FINISHING THE DAY ON A VERY WEAK NOTE. ACROSS THE BOARD RUTHLESS SELLING AND INVESTORS SHOWING NO INTEREST TOWARDS HOLDING LONG POSITIONS HAVE FURTHER WEAKENED, THE MAJOR CAUSE OF CONCERN IN THE INDIAN MARKETS ARE FII WHO ARE CONTINUOUSLY ON THE SELLING NOTE.
TODAY, WITH THE BETTER THAN FORECASTED US CONSUMER SPENDING NUMBERS, WHICH HAS HELPED TO CLOSE US INDICES WITH OVER ONE PERCENT GAINS ALONG WITH A POSITIVE CLOSING OF EUROPE AND POSITIVE CUES FROM THE ASIAN MARKETS WOULD HELP INDIAN MARKETS TO OPEN ON AN OPTIMISTIC NOTE TURNING THE SENTIMENTS. THOUGH THE SENTIMENT WAS VERY WEAK IN THE LAST DAYS TRADE BUT MARKETS TOOK SUPPORT AT A VERY CRUCIAL PHASE AT 5400 LEVELS. TODAY IF NIFTY TRADES ABOVE 5438 THEN LIKELY TO MOVE UP TO 5474 LEVELS AND MOVE UP ABOVE THIS POINT WOULD TAKE IT TO 5500 AND ANY BREAK ABOVE THIS WOULD TAKE NIFTY TO 5545 LEVELS. ON THE FLIP SIDE IF NIFTY TRADES BELOW 5420 THEN LIKELY TO DIP DOWN TO 5386 LEVELS AND ANY BREAK BELOW THIS POINT WOULD TAKE NIFTY TO 5222 LEVELS IN A SHORT TIME. ONE IS ADVISED TO SEE 5400 AS A CRUCIAL LEVEL IF NIFTY CLOSES BELOW 5400 THEN LIKELY TO DIP DOWN TO 5222 LEVELS. IF NIFTY CLOSES POSITIVE WE MAY EVEN SEE A POSITIVE OPENING TOMORROW ANOTHER IMPORTANT POINT TO REMEMBER IS WE ARE IN A WEAK ZONE WHERE WE ARE LIKELY TO DECLINE BELOW THE PREVIOUS LOWS YET AGAIN SHORTLY AS LONG AS NIFTY STAYS BELOW 5560 ONE SHOULD UNDERSTAND THAT WE ARE IN A WEAK TERRITORY AND ONE SHOULD MAKE USE OF EVERY UPSIDE TO SHRED THE POSITIONS AS LONG AS IT STAYS BELOW 5560 LEVELS.
