GOOD MORNING!!!
MARKETS STARTED ON A CAUTIOUS NOTE AFTER THE VOLATILITY WITNESSED IN THE LAST HOUR OF WEDNESDAY'S TRADE, IT WAS LIKE A DEAD CAT BOUNCE. INDICES MANAGED TO CAPITALIZE ON THE INITIAL GAINS AS ABSENCE OF ANY FOLLOW-UP PROFIT BOOKING SEEMINGLY LED TO THE RETURN OF CONFIDENCE AMONG INVESTORS. THE FRONTLINE INDICES SHOWED GREAT RESILIENCE DESPITE THE DISAPPOINTING INFLATION NUMBERS AND PAVED ITS WAY TOWARDS NORTH AFTER THE INITIAL SLUGGISHNESS. THE BOURSES SAW BARGAIN HUNTING FOR MOST PART OF THE TRADE AND EVENTUALLY FINISHED THE DAY’S TRADE AROUND THE HIGH POINTS OF THE DAY WITH SUBSTANTIAL GAINS. THOUGH THE BREADTH OF THE MARKETS REMAINED VERY POSITIVE BUT THE ONLY CONCERN IN THE MARKETS GROWTH WAS VOLUMES, VOLUMES FOR MARKETS REMAINED MARGINALLY LOWER WHEN COMPARED TO PREVIOUS SESSIONS. WE HAVE SEEN A RALLY ON THE BROAD BASED ON THE SHORT COVERING AHEAD OF BUDGET 2011.
MARKETS WOULD OPEN FLAT BUT AS LONG AS NIFTY TRADES ABOVE 5546 LIKELY TO MOVE UP TO 5625 AND THEN TO 5758 IN THE BROAD SENSE AS NIFTY HAS COME ON TO THE SHORT TERM POSITIVE ZONE, BUT AGAIN LIKELY TO DECLINE EVEN BELOW THE PREVIOUS LOWS OF THE INDICES AS THE LONG TERM BREADTH OF THE MARKETS REMAIN WEAK THOUGH THE SHORT TERM SEEMS TO BE ON THE RECOVERY WILL NOT LIVE LONGER. ON THE INTRADAY FRONT IF NIFTY TRADES ABOVE 5550 THEN LIKLEY TO MOVE UP TO 5575 WHICH MAY FACE TOUGH RESISTANCE AND THEN TO 5620 THERE AFTER WOULD MOVE TO 5650. ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 5530 LIKELY TO MAKE ITS JOURNEY TO 5500 AND THEN BREAK BELOW THIS LEVEL WOULD TAKE NIFTY TO 5470 AND 5428 LEVELS.
MARKETS WOULD OPEN FLAT BUT AS LONG AS NIFTY TRADES ABOVE 5546 LIKELY TO MOVE UP TO 5625 AND THEN TO 5758 IN THE BROAD SENSE AS NIFTY HAS COME ON TO THE SHORT TERM POSITIVE ZONE, BUT AGAIN LIKELY TO DECLINE EVEN BELOW THE PREVIOUS LOWS OF THE INDICES AS THE LONG TERM BREADTH OF THE MARKETS REMAIN WEAK THOUGH THE SHORT TERM SEEMS TO BE ON THE RECOVERY WILL NOT LIVE LONGER. ON THE INTRADAY FRONT IF NIFTY TRADES ABOVE 5550 THEN LIKLEY TO MOVE UP TO 5575 WHICH MAY FACE TOUGH RESISTANCE AND THEN TO 5620 THERE AFTER WOULD MOVE TO 5650. ON THE NEGATIVE SIDE IF NIFTY TRADES BELOW 5530 LIKELY TO MAKE ITS JOURNEY TO 5500 AND THEN BREAK BELOW THIS LEVEL WOULD TAKE NIFTY TO 5470 AND 5428 LEVELS.
