GOOD MORNING!!!
MARKETS GOT OFF TO A NEGATIVE START TRACKING WEAK GLOBAL CUES AS INVESTORS AT LARGE FELT THE HEAT OF BOILING CRUDE OIL PRICES AMID THE PROLONGED CIVIL UPHEAVAL IN LIBYA, RISING CRUDE OIL PRICES WAS THE BIGGEST CONCERN FOR THE INVESTORS AT LARGE SINCE HIGHER CRUDE PRICES MEAN WORSENING CURRENT ACCOUNT DEFICIT FOR THE IMPORTING ECONOMIES. AFTER THE GAP DOWN OPEN INDICES SLIPPED TO MUCH LOWER LEVELS TO FRESH INTRADAY LOWS AFTER A WEAK START AND LATER MARKETS SWUNG WITHIN A NARROW RANGE LATER TOUCHED THEIR INTRADAY HIGH LEVELS IN SECOND HALF BUT GOT DRAGGED TO LOWER LEVELS ON REPORTS THAT TROOPS LOYAL TO LIBYAN LEADER MUAMMAR GADDAFI LAUNCHED YET ANOTHER BOMBARDMENT NEAR OIL FACILITIES IN RAS LANUF. EVENTUALLY INDICES SETTLED LOWER BY OVER HALF A PERCENT LOSS. MARKET BREADTH REMAINED NEGATIVE AND THERE WERE NO GREAT VOLUMES IN THE MARKETS.
TODAY MARKETS WOULD OPEN IN A NEGATIVE TERRAIN TRACKING WEAK CLOSING OF US AND EUROPE MARKETS WHICH BLEEDED LAST NIGHT. IF NIFTY TRADES BELOW 550 LEVELS WE ARE BOUND TO SEE NIFTY TO SLIDE DOWN TO 5470 AND THEN TO 5455 LEVELS AND FURTHER BREAK BELOW THIS POINT WOULD TAKE NIFTY TO 5425 LEVELS AND THEN TO 5400 LEVELS, NIFTY MAY TAKE A GOOD SUPPORT AROUND 5400 LEVELS AND IF NIFTY HAPPENS TO BREAK THIS POINT THEN WOULD LIKELY TO COME DOWN MUCH MORE. ON THE FLIP SIDE IF NIFTY TRADES ABOVE 5520 THEN LIKELY TO MOVE UP TO 5540 LEVELS AND BREAK ABOVE THIS POINT WOULD TAKE IT TO 5566 LEVELS. ONE IS ADVISED TO BE CAUTIOUS ON THE UPSIDE FOR NOW AS LONG WE SEE SOME GOOD MOMENTUM ON THE BUYING FRONT IT IS WISE ENOUGH TO STAY OUT OF LONG AT THESE LEVELS AS THE UNDERTONE STILL REMAINS WEAK.
