GOOD MORNING!!!
INDICES GOT OFF TO A POSITIVE START AS INVESTORS REMAINED OPTIMISTIC AMID EXPECTATIONS OF ENCOURAGING FOURTH QUARTER EARNINGS BY CORPORATE. HOWEVER, THE INDICES SLIPPED INTO THE RED TERRAIN AS INVESTORS REMAINED CAUTIOUS RIGHT FROM THE INITIAL HOURS OF TRADE AS LEADS FROM ACROSS THE WORLD REMAINED SUBDUED BECAUSE OF ESCALATING PRICES OF INTERNATIONAL CRUDE WHICH ARE HOVERING AROUND THE HIGHEST LEVEL SINCE 2008 ON THE BACK OF GEOPOLITICAL RISKS TO SUPPLIES AND ON EXPECTATIONS OF IMPROVING ECONOMIC GROWTH. THE INDICES MOVED ONLY SIDEWAYS IN A TIGHT RANGE TILL MID MORNING SESSION BUT DRIFTED TO INTRADAY LOWS IN THE INITIAL MOMENTS OF THE SECOND HALF. HOWEVER, A SUDDEN REVIVAL IN METALS AND INFORMATION TECHNOLOGY WAS WITNESSED THEREAFTER AS INVESTORS COVERED THEIR SHORT POSITIONS IN THE DYING HOURS OF TRADE TO EVENTUALLY RECOVER MOST OF THE LOST GROUND AND SETTLE AROUND THE CRUCIAL SUPPORT LEVELS. THE BREADTH STILL REMAINS POSITIVE IN THE MARKET.
TODAY MARKETS WOULD OPEN FLAT AND WOULD TRADE IN A NARROW RANGE UNTIL THE LEVELS IN NIFTY ARE BROKEN ON THE UPPER OR THE LOWER BAND. IF NIFTY TRADES BELOW 5925 THEN LIKELY TO TRADE DOWN TO 5897 LEVELS AND THEN TRADE BELOW THIS LEVEL WOULD DRIFT DOWN TO 5865 AND THEN TO 5810 LEVELS. ON THE FLIP SIDE IF NIFTY TRADES ABOVE 5946 THEN LIKELY TO MAKE ITS JOURNEY TOWARDS 5974 AND THEN TO 6000 LEVELS BREAK AND TRADE ABOVE 6000 WOULD TAKE NIFTY TO 6050 LEVELS. ONE NEEDS TO REMAIN CAUTIOUS FROM THE CURRENT LEVELS WHERE NIFTY IS TRADING. WE MAY SEE EXTREMELY STOCK SPECIFIC MOVES TO SECTOR SPECIFIC MOVES AND WE MAY TRADE IN NARROW RANGES IN NIFTY AS WELL AS STOCKS. NEXT MARKETS DRIVER WOULD BE RESULTS KEEP A VIGIL ON THEM.
