"Markets have defied all logic and gained from strength to strength, making new highs on regular basis, as they are in unchartered territory. It is also heartening to note that both Nifty and Sensex have closed at higher end of the trading range on weekly and daily basis, which is strength going forward. Technology sector did report the earnings in line with market expectations, where as banking sector has done well. Huge inflows and the domestic liquidity are keeping the markets in firm stand. With crude staying firm around US$74, on supply concerns, inflation reported an upsurge to 4.27% from 4.13% over previous week, RBI is hesitant in taking any measures which might aggravate the inflation pressures. Petroleum ministry is contemplating raise in pretroleum products such as petrol and diesel, since the overall Indian crude basket has crossed tolerable levels, and subsidising the oil marketing companies losses beyond a point is difficult for the government too. Some encouraging measures as subsidising the interest etc., are announced by commerce minsitry to encourage exporters. Watch out HPCL, BPCL and IOC this week for good performance.
US markets and all world markets are in perfect bull phase, and India cannot be left out; however, our markets have risen too fast in too short time, due to participation of selective heavy weights and sectors, gives a picture that while we run the bull wave, caution is to be exercised, since the correction or selling from institutions shall come suddenly, due to any external risk, though internally things are ok for the present. Nifty futures are at a discount of 21 points as the close of friday trading as against 2 points as of thursday, indicating that the players have gone short once markets crossed 4500 level. 4530 is the consensus medium term target analysts are looking at and Nifty closed around 4505 after touching a high of 4513.90. When markets open positive on monday in the initial hours of trading it is advisable to go long on 4500 puts as a hedge against portfolio.
The day's range for Nifty shall be 4450 (Support) and 4530 (Resistance); Sensex shall be 15000 (Support) and 15400 (Resistance)
No comments:
Post a Comment