SMI Market View for 12th Oct. 2012

Posted By : Kishore B.S

Friends,

After the bearish start to the trading day today the markets finally gave a thumbs up to the bulls whereby the Indices edged up higher towards the end of the session.
Though the raise today was largely combined with a lot of negative volatility during the first half of the session, yet by the start of the second half of the session the bulls managed to take the market into their stride, ahead of the Infy results tomorrow.
Since tomorrow is a significant day with the start of the Results Season getting kicked off by the bell weather Infy it is likely to garner a lot of interest and significance since this result is likely to define the performance of the Corporate Sector for the Q2 of 12-13 which has largely been bearish when compared with the last year due to the higher interest costs and slackening Economic Growth.
The charts are indicating that the Markets are likely to remain volatile during the current Results seasons with the Indices facing severe resistance at the higher side which is 5730-5770 and it attains significance since these mentioned levels have not been breached during the last few sessions and the Indices dropped on account of profit booking to the 5650 levels as well.
Todays bounce above the 5700 mark infact is stating that the results tomorrow is to be watched with cautions which if supportive could swell the Indices to the 5880-5960 levels and if the results disappoint then the profit booking is likely to continue further below the lows witnessed yesterday of 5650 to the 5500 levels as the results progress.

In View of the above stated statements, it would be ideal to watch out for the results which would be announced just before the opening of markets for the direction to be threaded for the next week which would be as embarked in the previous para…..

(Inputs: Mr. Hemanth.V, Facutly TA, Stock Market Institute – Bangalore)

Cheers!!

Team SMI

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