GOOD MORNING!!!
IT WAS A BRUTAL ASSAULT FOR THE MARKETS DAY BY DAY IT SEEMS AS IF MARKETS ARE BEING GANG RAPED BY FII’S, DII’S, POLITICIANS, RBI, RETAILERS, INFLATION, AND WHAT NOT CORNERING EACH AND EVERY INVESTORS FOR THE INVESTMENTS THEY MADE. TILL DECEMBER END MAJORITY OF THE FIIS WERE ON LEAVE FOR THE VACATION NOW EVERY PROMOTERS AND INVESTORS ARE MADE TO MOVE ON A VACATION TO FORGET THIS NIGHTMARE FOR THE INVESTMENT THEY MADE. MARKETS AS USUAL FOLLOWED THE TREND OF THE LAST FEW DAYS STARTING ON A FLAT NOTE ON THE BACK OF STRONG CUES FROM THE OVERNIGHT US MARKETS WHICH GOT A LIFT FROM GOOD EARNINGS REPORT AND SOME MERGER ANNOUNCEMENTS. HOWEVER THE INDICES PLUNGED INTO THE RED AFTER TRADING IN THE POSITIVE TERRAIN FOR A VERY BRIEF PERIOD IN THE EARLY TRADE AS SELLING PRESSURE GATHERED GREATER MOMENTUM MARKETS FAILED TO SHOW ANY KIND OF RESILIENCE THEREAFTER AND PAVED WAY FOR ITS JOURNEY TOWARDS SOUTH. WE HAVE WITNESSED HEAVY UNWINDING OF OPEN LONGS IN THE MOST PART OF THE DAY AFTER FIIS CONTINUED TO BOOK PROFIT ACROSS THE TABLE DRAGGING THE MARKETS TO LOWER LOWS, WITH PRESSURE FROM RETAILERS MARKETS AND FIIS MARKETS COMPLETELY LOST ITS GROUND BREACHING THE CRUCIAL SUPPORT LEVELS AND HAS COME TO THE LEVELS OF JULY 2010 FOR THE FIRST TIME. THE MARKET BREADTH WAS DREADFULLY NEGATIVE WITH CONSUMER DURABLES, REAL ESTATE, AUTO AND BANKS PLUNGED TO THE MAXIMUM POSSIBLE LEVELS.
WITH CHINESE CENTRAL BANK HIKING THE INTEREST RATES WE MAY SEE CHINESE MARKETS TO PLUNGE DOWN IN THE OPENING AND MAY HAVE EQUAL PRESSURE ON ALL THE ASIAN COUNTER PARTS AND WITH THE CONTINUING SELLING PRESSURE THESE WOULD ADD FUEL TO THE FIRE IN THE INDIAN MARKETS WE MAY WITNESS SOME MORE SELLING PRESSURE TO CROP-IN IN THE MARKETS. TODAY IF NIFTY TRADES BELOW 5300 WE MAY DIRECTLY HEAD DOWN TOWARDS 5200 LEVELS THERE IS NO DOUBT IN THAT, THAT WE MAY HAVE ANY PAUSE IN THE MARKETS BUT IF NIFTY DOESN’T HOLD 5200 LEVELS WE MAY SEE SOME SELLING TO CROP IN THEREBY TAKING NIFTY TO BELOW 5000 LEVELS. THOUGH WE MAY HAVE SOME PAUSE ON THE PSYCHOLOGICAL FRONT AFTER BREACHING 5300 ON THE BROADER FRONT WE MAY SEE NIFTY TO 5200 LEVELS. IF NIFTY BREAKS AND TRADES BELOW 5300 THEN WE WOULD SEE NIFTY AT 5260 LEVELS AND THEN TO 5220 LEVELS AND BREAK BELOW THAT WE MAY SEE NIFTY AT 5200 LEVELS AND ANY CLOSE BELOW THIS WOULD WITNESS SHORT BUILDUP AND POSITION SQUARE OFF IN THE MARKETS. ON THE FLIP SIDE IF NIFTY TRADES ABOVE 5340 LEVELS WE MAY SEE IT TO GO UP TO 5360 LEVELS AND BREAK ABOVE THAT WE HAVE POSSIBILITY TO SEE NIFTY AT 5390 LEVELS AND AS LONG AS NIFTY CLOSES ABOVE 5500 LEVELS ONE CAN STAY ON THE SHORT.
