GOOD MORNING!!!
MARKET GOT OFF TO A SOFT START TRACKING ASIAN PEERS WHICH WERE TRADING IN SUBDUED NOTE. MARKETS SOON RECOVERED FROM EARLY MORNING'S LOSSES AND GRADUALLY KEPT GAINING STEAM ON THE BACK OF ROBUST BUYING IN AVIATION, ENERGY AND AUTO STOCKS, OWING TO A FALL IN OIL PRICES. THE BUYING INTERESTS GOT REINFORCED IN THE SECOND HALF OF TRADE AS THE INDICES WERE PROPELLED BY HEFTY POSITION BUILD UP IN HEAVYWEIGHT RELIANCE INDUSTRIES AND WITH SOME UNWINDING OF POSITIONS WHICH ELEVATED THE MARKETS FURTHER. EVENTUALLY MARKETS STAGED A STRONG RECOVERY, THOUGH THERE WAS A VERY GOOD RECOVERY SEEN ON THE INDICES FRONT THERE STILL REMAINS A WORD OF CAUTION AS THE MARKETS WENT UP WITH NO MUCH VOLUMES WHICH IS STILL A MATTER OF CONCERN. THOUGH THE BREADTH OF THE MARKETS REMAIN POSITIVE IT WAS NOT THE WAY IT SHOULD BE WITH A 86 POINT INCLINE IN THE NIFTY, THERE IS STILL LACK OF CONFIDENCE ON THE INVESTORS PART AS LONG AS THIS GROWS UP WE CANT REALLY BE SURE OF MARKETS TO MOVE HIGHER FROM THIS PLACE.
TODAY NIFTY MAY OPEN ON A NEGATIVE NOTE AND REMAIN UNDER PRESSURE AT EVERY HIGHER LEVELS, IF NIFTY TRADES ABOVE 5576 ONLY THEN IT CAN MOVE UP TO 5600 LEVELS ON THE UPSIDE AND ON THE FLIP SIDE IF NIFTY TRADES BELOW 5545 LEVELS LIKELY TO COME DOWN TO 5518 LEVELS AND THEN TO 5500 LEVELS AND ANY BREAK BELOW 5496 WOULD DRAG NIFTY TO 5450 LEVELS. BANK NIFTY LIKELY TO BLEED AS THERE IS A RAKE HIKE EXPECTED IN DAY AFTER TOMORROW RBI POLICY REVIEW MEET (17 MARCH 2011) BY ATLEAST 25 BASIS POINT. ONE CAN REMAIN SHORT ON EVERY RISE IN BANK NIFTY. AND WE DON’T SEE MUCH UPSIDE FROM HERE EVEN IN THE MARKETS ONLY IF RBI DOESN’T HIKE THE RATES THEN WE CAN SEE A GOOD RALLY, ELSE WE ARE LIKELY TO SUCCUMB TO PRESSURE.
