GOOD MORNING!!!
INDICES GOT OFF TO A STEADY START IN THE OPENING TRADE TRACKING OPTIMISTIC LEADS FROM OVERNIGHT WALL STREET WHICH CLOSED HIGHER LED BY GOOD JOBS DATA AND RALLY. INDICES GRADUALLY KEPT GATHERING MOMENTUM AND TOUCHED INTRADAY HIGHS AND THEN CAME HEFTY PROFIT BOOKING IN BANKING, AUTO AND REALTY WHICH DRAGGED THE INDICES EVEN BELOW THE NEUTRAL LINE THAT TOO JUST HALF AN HOUR BEFORE THE CLOSING BELL. BUT WHAT FOLLOWED IN THE FINAL MOMENTS OF TRADE WAS AN UNEXPECTED SHORT COVERING RALLY THAT HELPED THE BOURSES CONVALESCE MOST OF THE LOSSES AND SNAP EIGHTH STRAIGHT SESSION IN THE POSITIVE TERRAIN SETTLING A TAD BELOW THE PSYCHOLOGICAL LEVELS OF 5,850. THOUGH MARKETS WERE UP, THE MARKET BREADTH TURNED NEGATIVE BY THE END. IT WAS ALL IN ALL A ROLLERCOASTER RIDE ON THE SETTLEMENT DAY OF MARCH SERIES FUTURES AND OPTIONS CONTRACTS AS SENTIMENTS TURNED HIGHLY VOLATILE IN THE SECOND HALF OF THE SESSION.
TODAY NIFTY WOULD OPEN POSITIVE AND IF NIFTY TRADES ABOVE 5871 WOULD MOVE UP TO 5911 LEVELS AND ANY TRADE ABOVE THIS POINT WOULD TAKE FURTHER UPSIDE TO 5951 BUT WOULD EMPHASIZE THAT MARKETS ARE ON OVER BOUGHT REGION AND WOULD REVERSE THE TREND AT ANY GIVEN POINT SO IT IS WISE TO STAY AWAY FROM LONGS. IF NIFTY TRADES BELOW 5840 LEVELS WOULD TAKE NIFTY DOWN TO 5800 AND THEN TO 5760 LEVELS AND ANY FURTHER DOWNSIDE WOULD WEAKEN THE ENTIRE BREADTH OF THE MARKETS. AS OIL IS SURGING IT IS WISE TO STAY AWAY FROM THE MARKETS TO LARGE EXTENT. WOULD SUGGEST TO STAY CAUTIOUS.
