MARKETS GOT OFF TO AN OPTIMISTIC START TRACKING REBOUND IN OTHER ASIAN MARKETS ON BARGAIN BUYING AND A FURTHER DECLINE IN CRUDE OIL PRICES. THE MARKETS CONTINUED TO TRADE FIRM THROUGH THE DAY’S TRADE THERE WAS CONTINUAL AND SUSTAINED BUYING IN SEVERAL FRONT LINE STOCKS AND ELEGANTLY RECOVERED MAJORITY OF THE PREVIOUS DAYS LOSSES AND MANAGED TO CROSS THE CRUCIAL RESISTANCE LEVELS. BUT AFTER SURPASSING THE CRUCIAL RESISTANCE LEVELS AND TOUCHING INTRADAY HIGHS IN THE LAST TRADING SESSION PARED SOME PORTION OF THEIR GAINS DUE TO REBOUND IN CRUDE OIL PRICES COUPLED WITH SOMBER CUES FROM THE EUROPEAN PEERS. EVENTUALLY MARKETS MANAGED TO PERFORM LARGELY IN LINE WITH ASIAN PEERS AND SETTLE WITH OVER A PERCENT GAIN. BREADTH OF THE MARKET REMAINED POSITIVE BUT THE VOLUMES WERE VERY BLEAK.
TODAY MARKETS WOULD BE NEGATIVE TRACKING WEAK US AND EUROPE CLOSING ALONG WITH WEAK OPENING IN ASIAN PEERS. NIFTY MAY BE UNDER CONTINUAL PRESSURE AS WE ALSO HAVE POLICY REVIEW FROM CENTRAL BANK. IF NIFTY TRADES BELOW 5518 THEN LIKLEY TO COME DOWN TO 5482 AND THEN BELOW THAT WE CAN SEE NIFTY AT 5450 LEVELS AND ANY TRADE BELOW 5440 WOULD DRAG NIFTY TO 5400 LEVELS, STAY CAUTIOUS AROUND 5440 LEVELS AS THIS IS A MINOR SUPPORT FOR NIFTY AND TRADE BELOW THIS LEVEL WOULD DRAG NIFTY TO 5400 LEVELS BUT ANY TRADE BELOW 5400 LEVELS WOULD DRAG NIFTY BELOW 5170 LEVELS IN A VERY SHORT TIME. ON THE FLIP SIDE IF NIFTY TRADES ABOVE 5550 THEN LIKLEY TO MAKE AN UP MOVE TO 5576 LEVELS AND ANY TRADE ABOVE 5576 WE CAN SEE AT 5600. STAY CAUTIOUS IN THE MARKET WE MAY HAVE GREAT VOLATILITY.
