HAPPY TO BE AN INDIAN, JOIN HANDS IN CONGRATULATING TEAM INDIA FOR THEIR SPLENDID PERFORMANCE AND WISH THEM GOOD LUCK FOR THE FINAL.
INDICES GOT OFF TO A STEADY START WITH LOT OF CONVICTION TRACKING POSITIVE CLOSING OF AMERICAN MARKETS AND STRONG OPENING OF ASIAN INDICES. PERSISTENT BUYING BY FOREIGN FUNDS IN THE RECENT PAST TOO UNDERPINNED INVESTOR MOOD AHEAD OF THE QUARTERLY EARNINGS SEASON AS THEY EXPECTED THAT MOST OF THE HEADWINDS HAVE BEEN FACTORED IN BY THE MARKETS AND THAT THE COMPANIES WILL REPORT STRONG EARNINGS FOR THE FOURTH QUARTER. INDICES GRADUALLY KEPT GATHERING MOMENTUM THROUGH THE DAY’S TRADE AS INVESTORS CONTINUED TO AGGRESSIVELY PILE UP POSITIONS IN BEATEN DOWN STOCKS. THE FRONTLINE INDICES HIT THE INTRADAY HIGH LEVELS IN THE EARLY HOURS OF SECOND HALF, HOWEVER THE BENCHMARKS CAME OFF THE DAY’S HIGH LEVEL IN THE MID AFTERNOON SESSION AS INVESTORS BOOKED PARTIAL PROFITS A DAY AHEAD OF THE MARCH SERIES F&O CONTRACT EXPIRY. EVENTUALLY THE BOURSES SNAPPED SEVENTH STRAIGHT SESSION IN THE POSITIVE TERRAIN AND SETTLED A TAD BELOW THE PSYCHOLOGICAL LEVELS OF 5,800. MARKET BREADTH REMAINED OPTIMISTIC AND QUITE POSITIVE EVEN WITH LOW VOLUMES COMPARED TO THE PREVIOUS DAY.
TODAY MARKETS WOULD OPEN POSITIVE AND PURELY REMAIN IN A RANGE BOUND AHEAD OF CONTRACT EXPIRY FOR THIS MONTH. WE MAY SEE NIFTY TO HAVE VOLATILE MOVEMENTS, IF NIFTY TRADES ABOVE 5800 THEN LIKELY TO MOVE UP TO 5825 AND TRADE ABOVE THIS POINT WOULD TAKE NIFTY TO 5843 LEVELS. ON THE FLIP SIDE IF NIFTY TRADES BELOW 5795 THEN LIKELY TO COME DOWN TO 5773 AND BREAK BELOW THIS LEVELS WOULD TAKE NIFTY DOWN TO 5755 LEVELS. ONE SHOULD BE VERY CAUTIOUS IN TAKING POSITIONS AT THESE LEVELS AND WOULD SUGGEST TO HOLD ON SIDELINES AS NIFTY MAY LIKELY TO COME DOWN ON RETRACEMENT FRONT AS NIFTY HAS GONE UP BY MORE THEN 6% IN JUST SEVEN TRADING SESSION WHICH IS CONSIDERED TO BE VERY HIGH. ANOTHER IMPORTANT POINT TO BE REMEMBERED IS WITH YEAREND THERE MIGHT BE EVERY POSSIBILITY THAT FUNDS WERE BUYING JUST TO SCALE UP THERE NAV’S TO SHOW IN THEIR ANNUAL ACCOUNTS. WE CAN UNDERSTAND THE CLEAR TREND ONCE WE GET ON TO THE NEXT MONTH CONTRACT.
