Owing to the huge fall in US markets on friday, due to crude raising to US $138, in the absence of buyers from all categories, and continuing selling from FIIs, n 2008, who have withdrawn close to 5 Billion $ by now, our markets opened with huge downward gap, and selling accentuated in the first one hour of trading itself. While Nifty touched 4411.60(year's new low) Sensex touched 14846.18 intraday, where some short covering and buying emerged as of now. US futures are indicating some positive ness, where as european markets when they open how they trade and move will influence our markets.
In my opinion, nifty having broken 4500, it is to be seen whether it can close above it today at the end of the session. If it is able to close above 4500 then there will be a relief rally from there on and the market moves in the band of 4500 to 5000 band during the month. Failing which, nifty shall seek lower levels 4290 or so., in the coming days, and it would move in the band of 4200 to 4500 for sometime, before an upward break out takes place sometime after 27th june'2008 pricing the expectations on the performance of corporates for Q1 whose results shall start pouring in from 10th of July' 2008 onwards.
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