"Our indices have closed positive on Friday & week on week basis, after smooth roll over of positions to December Series, however, closed negative over October closings, amidst huge volatility during November. Markets have given a break out on upside by closing above 20DSMA on 30.11.2007, and shall consolidate at higher levels till the unfolding of events viz., FOMC meeting on 11.12.2007; Data on Advance Tax Payment by 15.12.2007 and the out come of Gujarath & Himachal Pradesh assembly elections result by 22.12.2007.
Since April 2005, our markets have not posted 2 consecutive negative closings at any point of time, and after every correction indices have posted new highs. Generally December is a good month for equities, barring unforeseen developments gloabally, this month also should have a positive closing over November, ofcourse with volatility, as we are at all time highs.
For confidently going long on markets clearing of old highs on Nifty / Sensex with volumes and participation is a must, till such time the markets are likely to consolidate in a wider range, and remain to be a trading market during the month. The levels to watch for any weakness are 19200 (Sensex) and 5740 (Nifty)
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