Market View – 1st June – SMI

Posted By : Kishore B.S

Hi Friends !!!

The markets remained resilient yesterday on the Expiry of the May series, though the markets opened with a GAP down yet the markets over the session made attempts to cover up the same and closed on a slight negative note than day before yesterday.
It is important to note that both the April and May series remained largely negative which were of similar patterns with sudden fall in the start of the month and then moving in narrow range for the rest of the month till the expiry, the range during the month of April was 5200-5360 which was a small range of 160 points and during the month of May the range being 4780-4960 which was 180 points.
The range also suggested that we were probably discounting most of the negative news of the shrinking Domestic Growth and Global growth and also the Negative news emanating from the Global front especially the Euro coupled with the depreciating Rupee to its life time lows against the Dollar.
With most of the negative news factored in and hopes of some relief for the Rupee and also the falling Crude prices could be the much looked for Silver lining for our markets which has been marred with lot of skepticism due to lack of any Positive Developments from any of the Fronts.
The charts are indicating that we are in the process of consolidation phase wherein the markets over the months are consolidating on every dip in narrow ranges from series to series and that we are above the bottoms witnessed during the months of December triggering hopes of some relief rally after the consolidation phase is over soon. But the Question remains as to when the much needed boost might emerge and the answer could be the 5000 mark which has not been breached for quite some time and any momentum above that should be used for the Upmove rally with probable target of 5200 soon.
Also the charts are indicating that the 4800 is a rock solid bottom which has been holding inspite of all the negative newsflow which if broken could signal to further downfall of 4600 in the days to come.
With these 2 factors as the guiding factors the play seems easier and classier for the benefit of traders and investors at large. And with this in mind I wish that the June series would prove the right chord for all the participants.

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


Team SMI

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