GOOD MORNING!!!
IT TURNED OUT TO BE ANOTHER PATHETIC TRADING SESSION FOR THE MARKETS WHICH GOT POUNDED BY AROUND A PERCENTAGE POINT ON THE SETTLEMENT DAY OF APRIL SERIES. THE KEY INDICES EXTENDED THE THREE DAY DECLINING STREAK FOR THE FOURTH CONSECUTIVE SESSION AS THE SELLING PRESSURE GATHERED GREATER MOMENTUM AFTER GOVERNMENT RELEASED THE DISAPPOINTING FOOD INFLATION NUMBERS WHICH STAYED ABSOLUTELY FLAT AT 8.76% ON ANNUAL BASIS DURING WEEK-ENDED APRIL 16 COMPARED WITH 8.74% RECORDED IN THE PREVIOUS WEEK. WITH THE DOWNWARD TREND OF FOOD INFLATION COMING TO A HALT IN RECENT WEEKS, AND CORE INFLATION SHOWING A CONSIDERABLE UPTIC IN THE MONTHS OF FEBRUARY AND MARCH 2010, INFLATION CONTINUES TO REMAIN AT HIGHLY UNCOMFORTABLE LEVELS, MAKING THE GROWTH-INFLATION MIX INCREASINGLY COMPLEX AND THE JOB OF RESERVE BANK OF INDIA (RBI) INCREASINGLY DIFFICULT. MARKET PARTICIPANTS RESORTED TO BROAD BASED POSITION SQUARING AS THEY FELT THAT RBI WILL NOW BE FORCED TO ADOPT MORE AGGRESSIVE STANCE IN ITS ANNUAL MONETARY POLICY REVIEW MEET ON MAY 3RD.
TODAY NIFTY WOULD OPEN FLAT TO NEGATIVE AND CONTINUE TO BE UNDER PRESSURE IN THE ENTIRE DAY. IF NIFTY TRADES BELOW 5787 THEN LIKELY TO COME DOWN TO 5710 LEVELS AND ANY BREACH WOULD DRIFT DOWN TO MUCH LOWER TO ALMOST 5600 LEVELS SO ONE HAS TO BE VERY CAUTIOUS IN THE MARKET IF NIFTY BREAKS BELOW 5700 LEVELS. ON THE FLIP SIDE IF NIFTY TRADES ABOVE 5830 THEN ONE CAN SEE SOME POSITIVE WAVE IN THE NIFTY AND CAN TAKE NIFTY TO 5876 LEVELS AND THEN TO 5900 LEVELS BUT NIFTY IS UNDER GOOD PRESSURE SO ONE HAS TO WAIT AND WATCH THAN GOING LONGS IN THE NIFTY.
