Market View 14th May

Posted By : Kishore B.S

Hi Friends,

The markets remained largely negative last week and the breakout of the downward flag suggesting a target of 4884 has been almost kind of done now. With the downfall the reasons of which can be broadly attributed to negative IIP data, no major Policy reforms and also negative Euro news, the markets have kind off corrected or retraced the 61.8% FIBONACCI levels of the Upmove from 4600-5600 levels. 
The graphs below are indicating that the Gap immediately below the support level created at 4804 level on Friday has not yet been covered which calls for caution since the gap is very near and could be covered soon. However the current levels need to be panicky and can be used by investors and traders alike to make short term and also medium term investments and trades since the valuations are getting attractive similar to the valuations created during the December of last year.
Investments can be made in selective mid cap and large cap banking stocks, metals and to some extent infra and real estate stocks whose valuations are attractive at current levels.

(Inputs Mr. Hemanth .V, Faculty TA, Stock Market Institute, Bangalore)


Team SMI

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