GOOD MORNING!!!
INDICES GOT OFF TO A STEADY START IN THE MORNING TRADE TRACKING LEADS FROM ASIAN MARKETS WHICH TRADED WITH CONVICTION AS SENTIMENTS TOOK SUPPORT FROM WALL STREET WHICH CLOSED HIGHER ON FRIDAY. INDICES PARED SOME OF ITS INITIAL GAINS IN THE MID-MORNING SESSION WHERE IT TOUCHED INTRADAY LOW LEVELS. HOWEVER, A SUDDEN REVIVAL WAS WITNESSED THEREAFTER AS STOCKS OF AUTO AND IT COMPANIES WITNESSED HUGE BUYING INTEREST WHICH EVENTUALLY TOOK INDICES TO NEW HIGHS, THOUGH THERE WAS GOOD AMOUNT OF PRICE HIKES SEEN IN STOCKS THERE IS A POINT OF CONCERN WHICH IS NOT REALLY GOOD FOR THE MARKETS THEY ARE VOLUMES, VOLUMES WERE VERY LOW THOUGH THE BREADTH OF THE MARKET IS STRONG WHICH IS A CLEAR INDICATION OF UNDERTONE OF MARKETS TO BE STILL SKEPTICAL, AS THE RECORDED VOLUMES IN THE LAST DAY IS AGAIN ONE OF THE LOWEST VOLUME DAY.
TODAY IF MARKETS OPEN ABOVE 5950 THEN LIKELY TO MOVE UP TO 5974 LEVELS AND ANY BREAK ABOVE THIS POINT WOULD TAKE NIFTY TO 6000 LEVELS AND ANY BREAK ABOVE 6000 WOULD TAKE MARKETS TO 6041 LEVELS. ON THE FLIP SIDE IF NIFTY TRADES BELOW 5935 LEVELS THEN WOULD SLIDE DOWN TO 5911 AND THEN TO 5887 LEVELS AND ANY BREAK BELOW THIS POINT WOULD FURTHER SLIDE DOWN NIFTY TO 5843 LEVELS ANY CLOSE BELOW 5870 LEVELS WOULD WEAKEN THE MARKETS IN THE DAY AHEAD. THOUGH WE MAY SEE MARKETS MOVE IN THE INITIAL TRADES BUT MAY NOT WITHSTAND TO A GREAT EXTENT AS THERE IS EVERY POSSIBILITY THAT MARKETS MAY TAKE U-TURN FROM HERE ON EVEN THOUGH THERE WOULD BE A POSITIVE BUYING INITIALLY WE MAY DEFINITELY SEE SOME AMOUNT OF CONSOLIDATION FROM HERE ON. MARKETS ARE IGNORING FEW VERY IMPORTANT THINGS WHICH IS NOT REALLY GOOD IN THE DAYS TO COME FIRSTLY, 2G SCAM WHICH REALLY DIDN’T PUT ANY PRESSURE ON THE TELECOM STOCKS YET. SECONDLY, MARKETS ARE NOT REALLY BOTHERING THE CRUDE PRICE SURGING WITH TURBULENCE AT THE MIDDLE EAST COUNTRIES THE SURGING OIL PRICES WOULD DEFINITELY POSE A GREATER IMPACT ALL OF A SUDDEN WHICH WILL LEAD MARKETS TO COME DOWN. THIRDLY, THE GAINS IN THE MARKETS WERE WITH LOW VOLUMES AND THAT TOO A RISE OF AROUND 12% IN THE INDEX WHICH IS NOT A HEALTHY SIGN FOR THE MARKETS IN THE DAYS AHEAD.
