Our markets opened with positive gap, as first day of new month 'June" began initially, however, both the indices have encoutered selling pressure at 50DSMA levels, for about first 3 hours indices have moved in a range between positive and negative basis. PM statement that government cannot protect the consumers anymore as the fiscal deficit is widening, with raise in crude prices, along with the news that RSP a component of left group, supporting UPA government deciding to walk out of co-ordination panel, sent jitters and Nifty came to 4800 levels, where some support emerged from intraday traders expecting a bounce. The same was shortlived, once european markets opened and started trading with losses, in the process 4800 and then 4750 also were breached in the last half an hour as intraday traders had to exit long positions built during the day. Finally, Nifty closed at 4739.60 on adjustment basis and Sensex closed above 16063.18.
US markets were down overnight, inspite of some positive economic data, raise in manufacturing index, on the fears that financial sector is still not out of woods. Crude which cooled to 125$ levels again firmed upto 127$ finally. VIX rose by 10% and closed at 29.49 indicates increase in volatility. Asian markets are trading in negative territory, and Singapore Nifty futures are currently quoting at 25 points discount to the last traded price of nifty futures. Our markets will open with downward gap, and whether support comes around 4700 levels is to be seen, one need to be cautious in taking long positions at this juncture since all the important supports are breached in yesterday trade.
Range for the Day: Nifty might trade in the range of 4650 to 4850.
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